HOLLYWOOD, Fla. & HOOD RIVER, Ore.--(BUSINESS WIRE)--HEICO Corporation (NYSE:HEI) (NYSE:HEI.A) today announced that its Flight Support Group acquired 80.1% of Decavo, LLC (“Decavo”) in an all cash transaction.
HEICO stated that it expects the acquisition to be accretive to its earnings within the year following the purchase. Further financial terms and details were not disclosed.
Hood River, Oregon-based Decavo designs and produces complex composite parts and assemblies incorporated into camera and related sensor assemblies and UAV airframes used in demanding defense and civilian applications.
Decavo employs approximately 40 team members in Hood River, Oregon and was founded in 2009. Decavo’s expertise includes engineering and manufacturing complex composites with unique structural and electromagnetic interference characteristics.
Decavo’s two co-founders, Phil Nies and Blake Richards will retain ownership in Decavo. Mr. Nies will assume the role of President, while Mr. Richards will remain in a senior advisory and shareholder role. Decavo will continue to operate in its current location, and no staff turnover is expected.
Laurans A. Mendelson, HEICO’s Chairman & Chief Executive Officer, and Eric A. Mendelson, HEICO’s Co-President and CEO of its Flight Support Group, jointly noted, “Decavo has demonstrated the ability to creatively engineer and manufacture composite products in response to exacting requirements. Phil and Blake have grown Decavo by being highly responsive to their customers, many of whom are located in the Hood River region. Decavo has excelled at responding technically and with turn times that have fostered exceptional growth. We are thrilled to have Phil and Blake and the entire Decavo team join the HEICO family.”
Phil Nies and Blake Richards, Decavo’s co-founders, jointly commented: “We wanted to associate with a larger organization that can provide financial and other resources to allow us to focus on engineering, design and manufacturing as well as develop our team. HEICO was our first choice, as we found a partner who would ensure that our team enjoys continued stability and resources offered by the HEICO organization.”
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 Flight Support Group and its 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.
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.