CLEVELAND, OH and MIAMI, FL / ACCESSWIRE / July 19, 2022 / HEICO Corporation (NYSE:HEI.A and HEI) today announced its Flight Support Group has acquired 96% of Accurate Metal Machining, Inc. ("Accurate") for cash at closing, plus potential additional cash consideration to be paid if certain post-closing earnings levels are attained. Additional financial details were not disclosed.
HEICO stated that it expects the acquisition to be accretive to its earnings within the year following closing.
Cleveland-based Accurate Metal Machining is a leading manufacturer of high-reliability components and assemblies. Accurate's customers include large aerospace, defense, and semiconductor equipment subsystem suppliers. These customers operate in markets in which the cost of failure is very high, and as such, purchased components must be made to extremely high reliability and quality standards. Accurate is differentiated in this market by delivering high quality parts, on-time, and at a competitive cost, and has many multi-decade customer relationships that attest to their capabilities. Accurate employs approximately 250 people at its Cleveland production facility.
Accurate was founded in 1976 by Louis Loiczly. Louis's four children, Eva, Gabriel, Martha, and Thomas, all work at Accurate and will continue to do so post-close. Accurate's President, John Racic, will continue in his current role with the company. HEICO stated that it does not expect any staff turnover to result from the acquisition.
Accurate adds new products and capabilities to HEICO's rapidly-growing and highly-successful Specialty Products Group operations which are dedicated to manufacturing high-reliability, mission-critical components for primarily aerospace and defense customers.
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 commented, "By treating each customer relationship as a long-term priority, Accurate has established itself as the manufacturer of choice for semiconductor capital equipment and aerospace manufacturers. In an industry where delivering high quality parts at reasonable prices on-time is hard to find, we were impressed with Accurate's history of fulfilling its promises to customers. We look forward to adding Accurate's unique capabilities and welcoming its exceptional Team Members into the HEICO Family."
John Racic and The Loiczly Family jointly commented, "We are very excited to be partnering with HEICO. HEICO's business philosophy, culture and impeccable reputation directly aligns with Accurate's values. When we began considering a transaction, our prerequisites were that any transaction would only affect our customers positively, would have no negative effects to our associates and management team, and would not disrupt our business strategies and continued investment in technology. All of these conditions were 100% satisfied. We could not have written a better script for this new chapter for Accurate. Accurate will be even stronger going forward and we look forward to a long-lasting, successful future as part of the HEICO family."
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.
Contact: Carlos L. Macau (954) 744-7562
SOURCE: HEICO Corporation