Marks HEICO's fifth announced acquisition in fiscal 2022
PINELLAS, FL and MIAMI, FL / ACCESSWIRE / August 9, 2022 / HEICO Corporation (NYSE:HEI.A and HEI) today announced that its dB Control subsidiary acquired 100% of the stock of Charter Engineering, Inc. ("Charter") for cash at closing. Further financial details were not disclosed. dB Control is part of HEICO's Electronic Technologies Group.
HEICO stated that it expects the acquisition to be accretive to its earnings within the year following the acquisition.
Pinellas Park, FL-based Charter designs and manufactures a complete line of RF and Microwave coaxial switches for the aerospace, defense, commercial, Automated Test Equipment ("ATE") and instrumentation markets.
Believed to be the only RF Switch manufacturer that offers low passive intermodulation ("Low PIM") on every switch they manufacture, Charter's product offering range includes Single Pole Double Throw ("SPDT") switches up to Single Pole Twelve Throw ("SP12T") switches with options for low passive intermodulation or very high average power (up to 1.5kW).
Charter will operate as part of HEICO Electronic Technologies Group's dB Control subsidiary, which has been growing its RF and Microwave component business, and Charter will complement dB's switch offering that was added through its Paciwave acquisition last year.
Charter was founded in 1990 by Keith Charti, who will remain with Charter after the acquisition, and HEICO does not anticipate any material staff turnover among Charter's approximately one dozen Team Members to result from the acquisition. Further, recognizing Charter's talented Team Members and the combination of Florida's excellent business operating climate and living environment, Charter will continue operating from its current Florida facility.
Laurans A. Mendelson, HEICO's Chairman and Chief Executive Officer, Victor H. Mendelson, HEICO's Co-President and CEO of its Electronic Technologies Group, and Mike England, President of dB Control, remarked, "We welcome Keith Charti and the entire talented Charter Engineering team to the HEICO family. Charter's unique and niche products provide excellent and important value to its customers and the marketplace, making it a great fit with our Company and we are excited to expand our switch product offering."
Keith Charti, Charter's Founder and CEO, commented, "I believed HEICO and dB Control would be the best and perfect home for Charter, its Team Members and customers, as they are committed to helping Charter grow and to continue Charter's special place in our market. I am very pleased to were able to bring our companies together"
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 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 COVID-19 Pandemic; HEICO's liquidity and the amount and timing of cash generation; lower commercial air travel caused by the COVID-19 Pandemic and its aftermath, 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 and manufacturing 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, including the effects of inflation, 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.
Victor H. Mendelson (305) 374-1745 ext. 7590
Carlos L. Macau, Jr. (954) 987-4000 ext. 7570
SOURCE: HEICO Corporation