BRIGHTON, Colo. & HOLLYWOOD, Fla.--(BUSINESS WIRE)--
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 .
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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