HEICO Corporation Announces Notable Acquisition
MIAMI and POWAY, Calif., March 19, 2012 (GLOBE NEWSWIRE) -- HEICO Corporation (HEI) (NYSE:HEI) today reported that its Electronic Technologies Group acquired the business and substantially all of the assets of Ramona Research, Inc. ("Ramona") for a cash payment at closing and potential "earnout" payments to be made in the event Ramona achieves certain earnings targets during the initial five years following closing. Further financial terms and details about Ramona were not disclosed.
HEICO stated that it expects the acquisition to be accretive to its earnings per share within the year following the purchase.
Founded in 1978 by its President, William Cockerell, Ramona designs and manufactures RF and microwave amplifiers, transmitters and receivers primarily used to support military communications on unmanned aerial systems ("UAS"), other aircraft, helicopters and ground-based data/communications systems. Ramona's customers include the United States Department of Defense and major military prime contractors.
Based in Poway, CA, Ramona employs approximately 15 people at its engineering and production facilities located there. HEICO reported that all Ramona employees will remain with the firm after closing and that Mr. Cockerell shall remain the company's President under a standard employment agreement.
Mr. Cockerell commented, "HEICO is a perfect home for Ramona. They are committed to our company's historical operating methods, our customers and our team, while also being committed to helping us grow our business and ensuring long term stability. They understand this industry very well and know how to operate successful customer-oriented businesses."
Laurans A. Mendelson, HEICO's Chairman and Chief Executive Officer, remarked, "Ramona Research is an excellent acquisition for HEICO. We are excited to make a sensible defense-related acquisition of a growing business which occupies a critical market niche. We welcome Bill Cockerell and the entire Ramona team to the HEICO family."
Victor H. Mendelson, HEICO's Co-President and CEO of its Electronic Technologies Group, noted, "Ramona Research continues our practice of adding top-quality, niche businesses that solve customer problems with unique designs and technology. Ramona's key position on growing UAS programs is a testament to their innovation and quality."
HEICO Corporation is engaged primarily in certain niche segments of the aviation, defense, space, medical, telecommunication and electronics industries through its Hollywood, Florida-based Flight Support Group and its Miami, Florida-based Electronic Technologies Group. HEICO's customers include a majority of the world's airlines and airmotives, as well as numerous defense and space contractors and military agencies worldwide, in addition to medical, telecommunication and electronics equipment manufacturers. For more information about HEICO, please visit our web site at http://www.heico.com.
Certain statements in this press release constitute forward-looking statements, which are subject to risks, uncertainties and contingencies. HEICO's actual results may differ materially from those expressed in or implied by those forward-looking statements as a result of factors including, but not limited to: lower demand for commercial air travel or airline fleet changes, which could cause lower demand for our goods and services; product specification costs and requirements, which could cause an increase to our costs to complete contracts; governmental and regulatory demands, export policies and restrictions, reductions in defense, space or homeland security spending by U.S. and/or foreign customers or competition from existing and new competitors, which could reduce our sales; HEICO's ability to introduce new products and product pricing levels, which could reduce our sales or sales growth; HEICO's ability to make acquisitions and achieve operating synergies from acquired businesses, customer credit risk, interest and income tax rates and economic conditions within and outside of the aviation, defense, space, medical, telecommunication and electronic industries, which could negatively impact our costs and revenues. Parties receiving this material are encouraged to review all of HEICO's filings with the Securities and Exchange Commission, including, but not limited to filings on Form 10-K, Form 10-Q and Form 8-K. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
CONTACT: Thomas S. Irwin (954) 987-4000 ext. 7560 Victor H. Mendelson (305) 374-1745 ext. 7590Source: HEICO Corporation 2012 GlobeNewswire, Inc.