Electronic Technologies Group Buys 80.1% of RH Laboratories
NASHUA, NH and MIAMI, FL / ACCESSWIRE / September 29, 2021 / HEICO Corporation (NYSE:HEI.A)(NYSE:HEI) today announced that its Electronic Technologies Group acquired 80.1% of the stock of RH Laboratories, Inc. ("RH") for cash paid at closing. RH's founders will continue to own the balance of the company. Further terms and financial details were not disclosed.
HEICO stated that it expects the acquisition to be accretive to its earnings within the first year following the closing.
Nashua, NH-based RH is an industry-leading designer and manufacturer of state-of-the-art RF and microwave integrated assemblies, sub-assemblies and components used in a broad range of demanding defense applications operating in harsh environments including Space. Their products, which include Multifunction Assemblies, Solid State Control Components, and Receiver Products, are most frequently found on electronic warfare, radar and missile systems.
Now celebrating its 20th year in business, RH's customers include major defense prime contractors, the United States Government and other defense customers who rely on RH for its highly-specialized engineering capabilities and production prowess. RH employs 45 people at its 21,000 square foot Nashua engineering and production facility.
RH was founded in 2001 by Benjamin Robinson, his son Stephen Robinson and Frank Holt. All three will continue in their pre-closing roles, with Benjamin remaining as CEO, Stephen remaining as President and Frank continuing as Vice President of Engineering. Further, the Robinsons and Mr. Holt will continue to own 19.9% of RH. HEICO stated that it does not expect any employee turnover to result from the acquisition.
Laurans A. Mendelson, HEICO's Chairman & Chief Executive Officer, along with Victor H. Mendelson, HEICO's Co-President and CEO of its Electronic Technologies Group, remarked, "We welcome Ben, Stephen, Frank and the entire RH family to the HEICO family. This remarkable company exemplifies the commitment to engineering excellence and customer prioritization that make RH a great fit with HEICO. We are excited to have RH's people, products and talent within HEICO."
Benjamin and Stephen Robinson commented, "We looked hard for the right partner for our company, a business which we've nurtured and grown for two decades. After getting to know the people at HEICO over several years, we believe they best understand our business and will respect our people, our legacy, our customers and the way we operate. We look forward to a strong future together. We are proud to be partnering with such a reputable company that shares our values."
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: 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.
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.
Victor H. Mendelson
Carlos L. Macau, Jr.
SOURCE: HEICO Corporation