HEICO Corporation (NYSE HEI.A and HEI) today announced that its
Electronic Technologies Group acquired 75% of the ownership of
Cookeville, TN-based Research Electronics International, LLC (“REI”) in
an all cash transaction. REI’s two owners/managers retained the
remaining 25% ownership. No further financial details were disclosed.
HEICO expects the acquisition to be accretive to its earnings within the
first 12 months after closing.
REI is the leading designer and manufacturer of Technical Surveillance
Countermeasures (“TSCM”) equipment to detect devices used for espionage
and information theft. REI’s products, which are fully designed and
manufactured internally, are known as the most advanced and
user-friendly in the TSCM industry. REI’s customers include government
agencies, law enforcement, corporate security personnel and TSCM
professionals worldwide. REI’s equipment is in use in over 100 countries.
REI was founded in 1983 by its President, Bruce Barsumian. Tom Jones
acquired 50% of REI and became its Chief Operating Officer in 1995. The
two have been REI’s equal owners since then. Upon the HEICO acquisition,
Mr. Jones succeeded to the President’s position and Mr. Barsumian is now
REI’s Chief Scientist, at his request. Both Mr. Barsumian and Mr. Jones
remain committed to REI, as both Team Members and substantial owners.
REI will continue to operate in its current 50,000 square foot,
state-of-the-art, fully-integrated and self-contained domestic research,
design, manufacturing and training facility located in Cookeville, TN.
Further, HEICO and REI stated that they do not expect any staff turnover
from among REI’s 65 highly-regarded Team Members to result from the
acquisition.
Bruce Barsumian and Tom Jones together commented, “Partnering with HEICO
is the right thing for our customers, Team Members, suppliers and for
our families. For more than 36 years, REI has been the most innovative
business in our field and we wanted to be a part of a group that is
committed to innovation, while also treating its people well. We found
that partner in HEICO and look forward to a strong future together.”
Laurans A. Mendelson, HEICO’s Chairman and Chief Executive Officer,
along with Victor H. Mendelson, HEICO’s Co-President and Chief Executive
Officer of its Electronic Technologies Group, jointly remarked, “From
the moment we met Bruce and Tom, we knew they and their company were
perfect fits with HEICO’s culture. Their passion for their products,
customers, Team Members and suppliers in a niche market greatly
impressed us. We have no doubt REI will continue to be the best in its
field.”
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: lower demand for commercial air travel or 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.
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 http://www.heico.com.
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