HEICO Corporation Acquires Naval Hydraulic Repair Specialist
June 11 2020 - 8:00AM
Business Wire
Flight Support Group Acquires Rocky Mountain
Hydrostatics
HEICO Corporation (NYSE: HEI.A) (NYSE: HEI) today announced that
its Flight Support Group acquired 70% of naval hydraulic systems
specialist Rocky Mountain Hydrostatics, LLC in an all cash
transaction. Additional financial details were not disclosed.
HEICO expects the acquisition to be accretive to its earnings
within the first year following the closing.
(NOTE: HEICO has two classes of common stock traded on the
NYSE. Both classes, the Class A Common Stock (HEI.A) and the Common
Stock (HEI), are virtually identical in all economic respects. The
only difference between the share classes is the voting rights. The
Class A Common Stock (HEI.A) carries 1/10 vote per share and the
Common Stock (HEI) carries one vote per share.)
Rocky Mountain overhauls industrial pumps, motors and other
hydraulic units with a focus on the support of legacy systems for
the US Navy. Customers include master ship repair contractors and
the US Navy. Work is performed at Rocky Mountain’s facilities as
well as shipboard at any location worldwide.
Rocky Mountain has 21 team members and is headquartered in
Brighton, Colorado, with satellite services in San Diego, CA and
Norfolk, VA. HEICO stated that it does not expect the purchase to
result in any material team member turnover and that Rocky Mountain
will continue to operate in its existing locations.
Rocky Mountain was founded in 1991 by Bradley and Therese
Zuercher. Mr. Zuercher will continue to lead Rocky Mountain, and
will retain 30% ownership.
Laurans A. Mendelson, HEICO’s Chairman & Chief Executive
Officer, along with Eric A. Mendelson, HEICO’s Co-President and
Chief Executive Officer of HEICO’s Flight Support Group, commented,
“Rocky Mountain Hydrostatics has distinguished itself as a
specialized provider to ensure the readiness of the United States
Navy’s fleet. As such, Rocky Mountain is recognized as the US
Navy’s Designated Overhaul Point for many critical components and
assemblies and holds DOD qualifications to manufacture the parts
incorporated in overhauls. We are impressed with the resources this
company has assembled to perform urgent repairs on critical systems
required for a ship to continue its mission.”
Bradley Zuercher commented, “We wanted the right partner to
support our team with technical and financial resources to move to
the next level, and where I can retain ownership and direct the
growth of the organization which Therese and I have built with
passion. HEICO’s culture, reputation, technical and manufacturing
capabilities, along with its strong financial resources made
partnering with HEICO an easy decision for Therese and myself.”
HEICO Corporation is engaged primarily in the design,
production, servicing and distribution of products and services to
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 website 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: the
severity, magnitude and duration of the coronavirus outbreak (the
“Outbreak”); HEICO’s liquidity and the amount and timing of cash
generation; the continued decline in commercial air travel caused
by the Outbreak; airline fleet changes or airline purchasing
decisions, 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; our ability to introduce
new products and services at profitable pricing levels, which could
reduce our sales or sales growth; product development or
manufacturing difficulties, which could increase our product
development costs and delay sales; our ability to make acquisitions
and achieve operating synergies from acquired businesses; customer
credit risk; interest, foreign currency exchange and income tax
rates; economic conditions within and outside of the aviation,
defense, space, medical, telecommunications and electronics
industries, which could negatively impact our costs and revenues;
and defense spending or budget cuts, which could reduce our
defense-related revenue. 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.
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version on businesswire.com: https://www.businesswire.com/news/home/20200611005431/en/
Eric A. Mendelson, (954) 744-7555 Carlos L. Macau, Jr., (954)
987-4000
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