MIAMI & TOLEDO, Ohio--Dec. 8, 2004--HEICO Corporation (NYSE:HEI.A) (NYSE:HEI) today announced that its HEICO Electronic Technologies Corp. unit acquired the business, substantially all of the assets and certain specified liabilities of Connectronics, Corp. and its affiliate Wiremax, Ltd. (collectively, "Connectronics") for an undisclosed cash price.
Connectronics is a growing and leading producer of specialty high voltage interconnection devices and wire primarily for defense applications and other markets. Among others, the Connectronics' products are utilized in aircraft missile defense, fighter pilot helmet displays, avionic systems, medical applications, wireless communications, as well as industrial applications including high voltage test equipment and underwater monitoring systems.
HEICO stated that it expects the acquisition to be accretive to its earnings per share within the first year following the purchase. Connectronics' annual revenues approximate $10 million. A portion of the consideration was deferred and will be paid subject to the business achieving certain earnings targets over the next 4 years. Additional financial details and transaction terms were not disclosed.
Connectronics' principal executive managers will remain with the business under employment agreements. HEICO also stated that it does not expect any employee turnover as a result of the acquisition.
Laurans A. Mendelson, HEICO's Chairman, President and Chief Executive Officer, stated, "Connectronics is another excellent purchase which fits perfectly with our acquisition strategy: it's a well managed designer and manufacturer of high quality aircraft and defense electronic products serving a niche market which broadens our product offering and presence on key programs. We are also very impressed with the Company's founders, Thomas Ricketts and Al Mocek, and the business which they built so successfully. HEICO is pleased to welcome Connectronics and all of its Team Members."
Connectronics' President & co-Founder, Thomas L. Ricketts, remarked, "HEICO is the right fit with Connectronics. We were approached by suitors many times, but turned all of them away until HEICO because we are like a small version of them--we focus on niche markets, highly engineered products, constant product development, unbureaucratic management and financial strength."
HEICO Corporation is engaged primarily in certain niche segments of the aviation, defense, space and electronics industries through its Hollywood, FL-based HEICO Aerospace Holdings Corp. subsidiary and its Miami, FL-based HEICO Electronic Technologies Corp. subsidiary. HEICO's customers include a majority of the world's airlines and airmotives as well as numerous defense and space contractors and military agencies worldwide in addition to telecommunications, electronics and medical equipment manufacturers. For more information about HEICO, please visit our web site at http://www.heico.com/.
Certain statements in this press release constitute forward-looking statements, which are subject to risks, uncertainties and assumptions. HEICO's actual results could 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 or space 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; HEICO's ability to make acquisitions and achieve operating synergies from acquired businesses, customer credit risk, interest rates and economic conditions within and outside of the aerospace, defense, space 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.
HEICO Corporation, Hollywood
Thomas S. Irwin, 954-987-4000 ext. 7560
Victor H. Mendelson, 305-374-1745 ext. 7590