HEICO Corporation Acquires Niche Aircraft Component Repair Company
MIAMI and GREER, S.C., Oct. 9, 2012 (GLOBE NEWSWIRE) -- HEICO Corporation (HEI) (NYSE:HEI) today announced that its Flight Support Group has acquired 80.1% of the assets and certain liabilities of Action Research Corporation of Greer, SC. Financial terms were not disclosed, but HEICO stated that it expects the acquisition to be accretive within the first year after the closing.
Action Research Corporation (ARC) is an FAA-Approved Repair Station located in Greer, South Carolina. ARC has developed unique proprietary repairs that extend the lives of certain engine and airframe components. ARC brings a seasoned engineering team with decades of experience in the design and repair of gas turbine fuel systems, heated airframe components and other technical, high value accessories. Greg Braselton, who founded ARC, will continue to lead the company and own 19.9%. HEICO also stated that it does not expect any employee turnover to result from the acquisition.
Greg Braselton stated, "Becoming part of the HEICO team is exciting and strategically a great fit for ARC and HEICO. We are complimenting HEICO's ability to bring high quality aircraft maintenance alternatives with our proven manufacturing and engineering work force. I firmly believe our customers, our team and HEICO will all benefit with this new relationship."
Eric Mendelson, Co-President of HEICO, added, "HEICO is proud to welcome Greg and ARC's highly talented team as we broaden HEICO's already deep portfolio of cost-saving products and services to the worldwide airline industry."
HEICO Corporation is engaged primarily in certain niche segments of the aviation, defense, space, medical, telecommunications 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 overhaul shops as well as numerous defense and space contractors and military agencies worldwide in addition to medical, telecommunications 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; and 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, telecommunications and electronics 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, except to the extent required by applicable law.
CONTACT: Eric A. Mendelson (954) 987-4000 ext. 7550 Thomas S. Irwin (954) 987-4000 ext. 7560
Source: HEICO Corporation 2012 GlobeNewswire, Inc.