HEICO Corporation Agrees to Make Important Acquisition

Mon May 6, 2013 8:30am EDT

* Reuters is not responsible for the content in this press release.

HOLLYWOOD, Fla. and SANTA FE SPRINGS, Calif., May 6, 2013 (GLOBE NEWSWIRE) -- HEICO Corporation (NYSE:HEI.A) (NYSE:HEI) today announced that it has entered into a definitive agreement to acquire Reinhold Industries, Inc. ("Reinhold") from certain affiliates of The Jordan Company, L.P., a New York-based investment firm, and Reinhold management.  Reinhold will be part of HEICO's Flight Support Group.  Financial details were not disclosed, but HEICO stated that it expects the acquisition to be accretive to its earnings per share within the first twelve months following closing.

The acquisition is subject to customary closing conditions, including clearance under the Hart-Scott-Rodino Anti-Trust Improvements Act.  The Company stated that it expects the acquisition to close within the next 45 days.

Santa Fe Springs, CA-based Reinhold is believed to be the world's leading manufacturer of advanced niche components and complex composite assemblies for commercial aviation, defense and space applications.  A majority of Reinhold's revenue is derived from the design, manufacture and sale of commercial aircraft components, such as its unique composite seatbacks and related components used in a large number of airliner seats.  Reinhold also generates a substantial portion of its sales from defense activities, principally those related to currently-fielded missile defense systems, such as the Patriot-2, Standard Missile and GMD programs.

Tracing its roots to its start by the Reinhold brothers in 1928, Reinhold now employs approximately 200 people at its facilities in Southern California, where the company conducts all of its operations.  HEICO stated that Reinhold's management will remain with the company in their current positions.  HEICO also stated that it does not expect any employee turnover as a result of the acquisition.

Laurans A. Mendelson, HEICO's Chairman and Chief Executive Officer, along with Eric A. Mendelson, HEICO's Co-President and CEO of its Flight Support Group, jointly commented, "Reinhold is an excellent acquisition for HEICO, as it offers a growing product line in growing markets.  Reinhold's outstanding quality record, reputation and exceptional management were also critical to our decision to buy the business."

They added, "Reinhold's significant presence on key missile defense programs is very attractive to HEICO, especially given that a sizable portion is for systems being purchased by foreign government allies of the United States who need to create or strengthen their missile defense protections.  We welcome all of Reinhold's employees to the HEICO family and are very excited to work with this talented group of people managed by Reinhold's President and CEO, Clarence Hightower, who has led Reinhold to notable success."

Clarence Hightower remarked, "We could not be happier to join HEICO and we look forward to continuing our growth with a company that has HEICO's growth record and history of treating its people as valued team members.  Further, HEICO's commitment to quality and to maintaining acquired companies with their existing management teams in place is ideal for us."

Akerman Senterfitt acted as legal counsel to HEICO.  Lazard acted as the sole financial advisor to Reinhold.  Mayer Brown LLP acted as legal counsel to Reinhold.

HEICO Corporation is engaged primarily in certain niche segments of the aviation, defense, space, medical, telecommunications and electronics industries through its Hollywood, FL-based Flight Support Group and its Miami, FL-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.

The Jordan Company (www.thejordancompany.com), founded in 1982, is a middle-market private equity firm with over $5 billion of committed capital assets under management and a 30-year track record of investing in and contributing to the growth of many businesses across a wide range of industries.  The senior investment team has been investing together for over 20 years and they are supported by the Operations Management Group, which was established in 1988 to initiate and support operational improvements in portfolio companies.  Headquartered in New York, The Jordan Company also has offices in Chicago and Shanghai."

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
         
         Carlos L. Macau, Jr. (954) 987-4000 ext. 7570
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