HEICO Corporation Subsidiary Acquires Specialty Component Maker in India
HEICO 's Paris-based subsidiary Exxelia has acquired 70% of SVM Private , an Indian manufacturer of electronic passive components. SVM, founded in 1989, specializes in magnetic components and busbars for healthcare and industrial markets. The Chennai-based company will maintain its current management, with founder Ramprasad Meka retaining 30% ownership and continuing as Managing Director. The acquisition is expected to be earnings accretive within a year and strengthens Exxelia's position in medical imaging equipment markets while expanding its presence in India. This strategic move complements HEICO's existing Indian operations through its Alcon subsidiary in Nashik.
HEICO ha acquisito il 70% di SVM Private, un produttore indiano di componenti passivi elettronici, tramite la sua filiale Exxelia con sede a Parigi. SVM, fondata nel 1989, si specializza in componenti magnetici e barre collettive per il mercato della sanità e dell'industria. L'azienda di Chennai manterrà la sua attuale dirigenza, con il fondatore Ramprasad Meka che conserverà il 30% della proprietà e continuerà nel ruolo di Direttore Generale. Si prevede che l'acquisizione porti a un incremento degli utili entro un anno e rafforzi la posizione di Exxelia nel mercato delle attrezzature per l'imaging medico, espandendo al contempo la sua presenza in India. Questa mossa strategica completa le attuali operazioni indiane di HEICO tramite la sua filiale Alcon a Nashik.
HEICO ha adquirido el 70% de SVM Private, un fabricante indio de componentes electrónicos pasivos, a través de su filial Exxelia con sede en París. SVM, fundada en 1989, se especializa en componentes magnéticos y barras colectoras para los mercados de salud e industrial. La empresa con sede en Chennai mantendrá su dirección actual, con el fundador Ramprasad Meka reteniendo el 30% de la propiedad y continuando como Director General. Se espera que la adquisición sea beneficiosa en términos de ganancias dentro de un año y fortalezca la posición de Exxelia en los mercados de equipos de imagen médica, al mismo tiempo que expande su presencia en India. Este movimiento estratégico complementa las operaciones existentes de HEICO en India a través de su filial Alcon en Nashik.
HEICO의 파리 본사 자회사 Exxelia가 인도 전자 수동 부품 제조업체 SVM Private의 70%를 인수했습니다. 1989년에 설립된 SVM은 의료 및 산업 시장을 위한 자기 부품과 배전반을 전문으로 하고 있습니다. 첸나이에 본사를 둔 이 회사는 창립자인 Ramprasad Meka가 30%의 소유권을 유지하고 계속해서 관리 이사로 활동함에 따라 현재의 경영진을 유지합니다. 이 인수는 1년 이내에 수익을 증가시킬 것으로 예상되며, Exxelia의 의료 영상 장비 시장에서의 입지를 강화하고 인도에서의 존재감을 확장합니다. 이 전략적 움직임은 Nashik에 있는 Alcon 자회사를 통해 HEICO의 기존 인도 사업을 보완합니다.
HEICO a acquis 70 % de SVM Private, un fabricant indien de composants passifs électroniques, par le biais de sa filiale Exxelia basée à Paris. SVM, fondée en 1989, se spécialise dans les composants magnétiques et les barres de distribution pour les marchés de la santé et industriel. L'entreprise basée à Chennai conservera sa direction actuelle, avec le fondateur Ramprasad Meka gardant 30 % de la propriété et continuant en tant que directeur général. L'acquisition devrait être bénéfique en termes de résultats dans l'année à venir et renforcer la position d'Exxelia sur le marché des équipements d'imagerie médicale tout en étendant sa présence en Inde. Ce mouvement stratégique complète les activités existantes de HEICO en Inde via sa filiale Alcon située à Nashik.
HEICO hat 70% von SVM Private, einem indischen Hersteller von passiven elektronischen Bauelementen, über ihre Pariser Tochtergesellschaft Exxelia erworben. SVM, gegründet 1989, spezialisiert sich auf magnetische Komponenten und Sammelschienen für den Gesundheits- und Industriesektor. Das Unternehmen mit Sitz in Chennai wird seine aktuelle Führung beibehalten, wobei der Gründer Ramprasad Meka 30% des Eigentums behält und weiterhin als Geschäftsführer tätig ist. Es wird erwartet, dass die Akquisition innerhalb eines Jahres gewinnbringend sein wird und die Position von Exxelia im Markt für medizinische Bildgebungstechnik stärkt und gleichzeitig ihre Präsenz in Indien ausdehnt. Dieser strategische Schritt ergänzt die bestehenden indischen Aktivitäten von HEICO über ihre Tochtergesellschaft Alcon in Nashik.
- Acquisition expected to be earnings accretive within first year
- Expands product portfolio in magnetic electronics across multiple markets
- Strengthens presence in growing Indian market
- Enhances medical imaging equipment product offerings
- Retains existing management expertise with 30% ownership stake
- None.
Insights
This strategic acquisition strengthens HEICO's position in both the Indian market and medical imaging sector. The 70% acquisition of SVM brings valuable expertise in magnetic components and busbars, complementing Exxelia's existing capabilities. The deal structure, with management retaining
The acquisition is expected to be earnings accretive within a year, indicating strong financial synergies. SVM's established relationships with subsidiaries of US and European multinational firms provide a solid foundation for expansion. The deal enhances HEICO's manufacturing footprint in India, leveraging local cost advantages while supporting French customers' offset obligations. This positions HEICO to capitalize on India's growing industrial and healthcare markets while diversifying its geographic revenue streams.
The acquisition significantly bolsters HEICO's capabilities in medical imaging components, particularly through SVM's expertise in critical magnetic solutions. Their 35-year track record in designing and manufacturing specialized components for medical imaging applications adds valuable intellectual property and technical know-how to HEICO's portfolio. The complementary nature of SVM's products with Exxelia's existing medical sector offerings creates opportunities for integrated solutions and expanded market reach.
The retention of SVM's management and commitment to maintaining the current facility and workforce ensures continuity in quality and customer relationships. This is important in the medical sector where reliability and compliance with standards are paramount.
MIAMI, FL, PARIS, FRANCE, and CHENNAI, INDIA / ACCESSWIRE / November 4, 2024 / HEICO Corporation today announced that its Paris, France-based Exxelia subsidiary acquired
HEICO stated that it expects the acquisition to be accretive to its earnings within the year following closing.
Based in Chennai, India, SVM is a leading designer and manufacturer of high-performance electronic passive components and sub-systems, including critical magnetic components and busbars, specifically serving the healthcare and industrial end-markets. SVM primarily serves Indian customers, including subsidiaries of large US and European multi-national firms, along with other international clients.
Founded in 1989 by Hemaltha and Ramprasad Meka, SVM has 35 years of expertise in the design, development, and manufacturing of coils, transformers, and laminated or coated/plated busbars, among other products. The company has become a leader in critical magnetic solutions for medical imaging applications, leveraging its deep understanding of all relevant standards and strong commitment to quality.
Mr. Meka, who serves as SVM's Founder and Managing Director, will continue to own
Through this acquisition, Exxelia, which counts medical imaging equipment products among its key markets, will enhance its product offering with busbars, along with SVM's know-how and expertise in magnetics, while strengthening its position in the medical sector, a key development area.
Exxelia has extensive experience in India through its highly-successful Alcon subsidiary in Nashik, India, along with other business activities in the country.
Laurans A. Mendelson, HEICO's Chairman and CEO, along with Victor H. Mendelson, HEICO's Co-President, and Paul Maisonnier, Exxelia's Chief Executive Officer, said: "We are thrilled to welcome SVM to the family! SVM is a well-established leader in its niche market, recognized for its great technology and talented team. By joining forces with SVM, we are significantly enhancing our magnetic electronics product portfolio across a wide range of markets. Additionally, we are expanding our presence in India with a new magnetic electronics manufacturing site, complementing our existing capacitor facility. This strategic move will not only strengthen our support for French customers in meeting their offset obligations, but also enhance our ability to capitalize on the rapidly growing Indian market."
Ramprasad Meka, SVM's Founder and Managing Director, said: "SVM is delighted to be a part of Exxelia, a human-sized passive component group with deep expertise in magnetics, power electronics, and the medical sector. This partnership marks a significant milestone in SVM's journey, enabling us to retain our talented team, while benefiting from Exxelia's vast global sales network. We look forward to this new chapter, which will accelerate our international growth and enhance our global reach."
HEICO Corporation (NYSE:HEI) 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.
About SVM
SVM is a leading Indian designer and manufacturer of magnetics, busbars and electro-mechanical components, with a state-of-the-art facility in Chennai, India. The company sells different magnetic products (inductors, transformers, bobbins for high and low frequency applications) as well as many different busbars: multi-layer laminated, flexible, resin cast or with specific coating (epoxy powder, PVC coated) and plating (nickel & gold, silver, tin). SVM serves the healthcare and industrial market and controls every step of product development internally, thanks to vast in-house tooling.
For more information, visit http://www.svmpl.in
About Exxelia
Exxelia is a leading global designer and manufacturer of high performance passive components and subsystems with factories in France, United States, India, Morocco and Vietnam. Exxelia's product portfolio includes a wide range of capacitors (film, tantalum, ceramic and electrolytic capacitors), ruggedized magnetic products (inductors, transformers, rotor, stator, etc.), resistors, slip rings, position sensors, medical sensors and high-precision mechanical parts. Recognized worldwide for its advanced design and technical expertise, Exxelia develops both "catalog" and "custom" products exclusively serving high-reliability markets such as aeronautic, space, defense, medical, transportation, telecommunication infrastructure and advanced industrial applications.
Additional information can be found at http://www.exxelia.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
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FAQ
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