HEICO Corporation Completes the Acquisition of Pioneer Industries

Rhea-AI Summary

HEICO Corporation (NYSE:HEI.A, HEI) announced the successful acquisition of Pioneer Industries, a leading specialty distributor of military aviation spares. The acquisition, finalized on March 18, 2022, follows a regulatory approval received on February 10, 2022. HEICO anticipates this acquisition will positively impact its earnings within a year. Pioneer Industries, located in Farmingdale, NY, serves notable clients including the US Department of Defense, enhancing HEICO's position in the defense sector.

Positive

• Acquisition expected to be accretive to earnings within one year.
• Strengthens HEICO's position in the military aviation spares market.
• Pioneer Industries enhances customer base with significant clients like the US Department of Defense.

Negative

• None.

Flight Support Group Acquires Leading Specialty Defense Spares Distributor

FARMINGDALE, NY and MIAMI, FL / ACCESSWIRE / March 18, 2022 / HEICO Corporation (NYSE:HEI.A and HEI) today announced that its Flight Support Group completed the acquisition of Pioneer Industries. On February 10, 2022, HEICO announced that it entered into an agreement, subject to regulatory approval which was subsequently received, to acquire Pioneer. The Purchase was completed under previously announced terms.

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.

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 COVID-19 Pandemic; HEICO's liquidity and the amount and timing of cash generation; lower commercial air travel caused by the COVID-19 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

SOURCE: HEICO Corporation

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FAQ

What did HEICO announce on March 18, 2022?

HEICO announced the completion of the acquisition of Pioneer Industries.

What is the significance of the Pioneer Industries acquisition for HEICO?

The acquisition is expected to enhance HEICO's earnings and strengthen its position in the defense sector.

Who are the primary customers of Pioneer Industries?

Pioneer Industries' customers include the US Department of Defense and companies supporting the defense sector.

When did HEICO first announce the acquisition of Pioneer Industries?

HEICO first announced the acquisition on February 10, 2022.

Under what conditions was the acquisition of Pioneer Industries completed?

The acquisition was completed under previously announced terms following the receipt of regulatory approval.