SANTA ANA, CA and MIAMI, FL / ACCESSWIRE / October 1, 2024 / HEICO Corporation (NYSE:HEI) and (NYSE:HEI.A) today announced that its Electronic Technologies Group acquired 92.5% of Marway Power Solutions, Inc. ("Marway") for cash at closing. The balance of the company's ownership will continue to be held by its executive management. Further financial terms were not disclosed.
HEICO stated that it expects the acquisition to be accretive to earnings within the year following the acquisition.
Founded in 1980, Marway is a leading designer and manufacturer of power distribution solutions for mission-critical systems deployed in defense, aerospace, communications, test & measurement, and industrial applications on land, air, and sea. Its primary products are power distribution units, power supplies, automatic transfer switches and related control panels.
Based in Santa Ana, CA, Marway employs approximately 50 people at its facility there. Paul Patel, Marway's long-time President and CEO, will continue leading the company and Marway will continue operating from its existing engineering and manufacturing facility. HEICO also stated that it does not expect any material Team Member turnover to result from the acquisition.
Laurans A. Mendelson, HEICO's Chairman and Chief Executive Officer, along with Victor H. Mendelson, HEICO's Co-President and CEO of its Electronic Technologies Group, jointly remarked, "We are excited to welcome Marway, a very successful company known for its highly specialized design and quality capabilities and leadership in power distribution systems, into the HEICO family. Paul and his team have built Marway into a recognized pacesetter of its niche products and we are pleased they will continue to build this special company."
Paul Patel, Marway's President & CEO, commented, "Partnering with HEICO is a great next step in Marway's journey, as this will continue to see Marway managed in the same responsive and entrepreneurial way we've historically run it, while allowing us to benefit from HEICO's many successful attributes. We are confident that our customers and Team Members continue to have a good future with Marway."
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 https://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. Factors that could cause such differences include, among others: the severity, magnitude and duration of public health threats, such as the COVID-19 pandemic; our liquidity and the amount and timing of cash generation; lower commercial air travel, 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; cyber security events or other disruptions of our information technology systems could adversely affect our business; and our ability to make acquisitions, including obtaining any applicable domestic and/or foreign governmental approvals, and achieve operating synergies from acquired businesses; customer credit risk; interest, foreign currency exchange and income tax rates; and 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. 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 Information:
Victor H. Mendelson
(305) 374-1745 ext. 7590
Carlos L. Macau, Jr.
(954) 987-4000 ext. 7570
SOURCE: HEICO Corporation