Flight Support Group to Acquire Pioneer Industries
FARMINGDALE, NY and MIAMI, FL / ACCESSWIRE / February 10, 2022 / HEICO Corporation (NYSE:HEI.A)(NYSE:HEI) today announced its Flight Support Group entered into an agreement to acquire 74% of Pioneer Industries, LLC 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.
Farmingdale, NY-based Pioneer Industries is a leading specialty distributor of spares for military aviation, marine, and ground platforms. Its customers include the US Department of Defense and companies that support the defense sector.
Pioneer's owners and leaders, Robert and David Yormack, brothers whose family founded Pioneer in 1945, will retain 26% of Pioneer's equity and continue in their current roles with the company. HEICO stated that it does not expect any staff turnover to result from the acquisition.
Pioneer adds new products and capabilities to HEICO's rapidly-growing and highly-successful Defense Sustainment and Distribution operations which are dedicated to supporting the defense aftermarket's specialized and niche needs, along with sales to new defense equipment production.
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, "Pioneer has established itself as the distributor of choice for many large and small manufacturers, whose products provide critical support for our Armed Forces. We are honored that the Yormack family trusts HEICO to become their partners in their highly successful 77-year-old company, and we in turn are excited for the Yormacks and the entire Pioneer team to join the HEICO family."
David and Robert Yormack commented, "It is important for us to remember where we came from, where we are, and where we are headed. Our parents, Gershon and Linda Yormack taught us to be passionate about our business and surround ourselves with passionate, hard-working, bright people, that take pride in their work. These are some of the reasons that we are excited to partner with the HEICO family, who share these same qualities. The combination of HEICO's heritage in Aerospace and Defense coupled with a family minded culture makes them our ideal partner to expand our offering and create growth opportunities for our suppliers and team members. Further, we are certain that our partnership will provide greater support to the warfighter."
The transaction is subject to antitrust regulatory approval. Closing is expected promptly after receipt of antitrust clearance and satisfaction of the closing conditions.
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 Pandemic; HEICO's liquidity and the amount and timing of cash generation; lower commercial air travel caused by the 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:
Eric A. Mendelson (305) 374-1745
Carlos L. Macau, Jr. (954) 987-4000
SOURCE: HEICO Corporation