2022-08-11 | NYSE:HEI | Press release
Electronic Technologies Group acquires Sensor Systems
CHATSWORTH, CA and MIAMI, FL /ACCESSWIRE/August 11, 2022/ HEICO Corporation (NYSE: HEI and HEI.A) today announced that its electronics technology group has acquired all of the shares of Sensor Systems, Inc. (“Sensor”) for a combination of cash and approximately 575 000 HEICO Class A ordinary shares. Further financial details were not disclosed.
HEICO said it expects the acquisition to be earnings accretive within a year of the acquisition.
Sensor, based in Chatsworth, Calif., is one of the world’s leading designers and manufacturers of airborne antennas for commercial and military applications. Recognized as an international standard for many of its antennas, Sensor’s products include Direction Finding (“ADF”), Altimeter, Glide, Global Positioning System (“GPS”), L-Band, and more. , beacon marker, satellite communications, Total Collision Avoidance System (“TCAS”), Very High Frequency (“VHF”) and Very High Frequency Omnidirectional Range (“VOR”) antennas. The sensor’s antennas are found on nearly every large commercial transport aircraft built in the past 50 years, as well as many commercial and military aircraft.
Sensor was built over a period of more than 50 years by the dynamic and legendary team of Seymour (“Si”) Robin and Mary (“Betty”) Bazar. Betty and her first husband, aeronautical entrepreneur and engineer Harvey Bazar, founded the company in 1961, growing it successfully together until Harvey’s unfortunate and sudden death in 1965 at the age of 42.
As a mother of two children and a business, Betty showed her signature strength and determination in pursuing the business. Successful aviation entrepreneur Si Robin joined the company in 1972. Si’s knowledge of the industry and passion for aviation helped propel the company and later, in 1988, the super duo of Betty and Si got married. Betty died in June 2021 at the age of 98, but remained active and an important part of the business until her passing.
Recognized in the field of aviation as innovators and pioneers, Si and Betty have led Sensor in the development and supply of hundreds of thousands of antennas on dozens of aircraft types and numerous defense applications. They were present at many industry shows and meetings where they helped aviation pioneers and more established companies perfect their products.
Si was recognized as a “Living Legend of Aviation” in 2009 at the annual Living Legends Black Tie Gala. With many inventions and patents, Si joined the ranks of aviation innovators, record holders and celebrities such as American astronauts Neil Armstrong and Gene Cernan; actors John Travolta and Harrison Ford; entrepreneurs Jimmy Buffett and Sir Richard Branson; and other luminaries who have received Living Legends of Aviation Awards for their historic contributions to the industry. In 2020, Harry F. Robertson, the founder of HEICO’s Robertson Fuel Systems subsidiary, was inducted as a Living Legend of Aviation, meaning the founders of two HEICO companies have been official legends of aviation. industry.
Betty and Si have also been known for their extraordinary generosity for many decades. Among a few of their many philanthropic legacies are the aviation center, now known as Robin Hall, at the University of North Dakota, from which Betty and Si each received honorary degrees in 2018; contribute significantly to the Pearl Harbor Museum commemorating the infamous December 7, 1941 attack on the United States and the many lives lost on that date; as well as the Condor Squadron, which flies vintage World War II AT-6 aircraft in formation at parades, memorial services and events commemorating veterans in California.
Si Robin commented: “Selling Sensor was a difficult decision, but we felt it was the right course of action to ensure the vitality of the business. Betty, our family and I wanted to know that Sensor would have a great home that would continue operations and growth in the same location and under the same name that we have made Sensor into the industry leader it is today. We also wanted to be sure that our employees would be respected and valued. Our family has known the Mendelson and HEICO family for many years and we believed that they were the only company that would run the business as we would like. »
Laurans A. Mendelson, President and CEO of HEICO, as well as Victor H. Mendelson, HEICO Co-President and CEO of its Electronic Technologies Group, remarked, “If and Betty have become special friends and good, we are therefore committed to building on the remarkable legacy they have created over more than half a century. From the first time we met, it was clear that we all value innovation and quality, that we love our industry, that we love our country, and that we care deeply about everyone at Sensor and HEICO as one. excellent alliance and we welcome all members of the Sensor team to the HEICO family.”
HEICO said Sensor will continue to operate as its own business producing its full line of products from its approximately 50,000 square foot multi-building facility in Chatsworth, California. HEICO said it does not expect significant turnover among Sensor’s approximately 200 employees as a result of the acquisition.
HEICO previously provided pre-merger notification under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 and received clearance to complete the acquisition.
DA Davidson and his team led by Paul Weisbrich acted for the sellers as investment banker in the transaction, while the law firms Rodnunsky & Associates and Sheppard Mullin Richter & Hampton, LLP provided legal advice to the sellers. The law firms Akerman LLP and Cox Castle & Nicholson represented HEICO in the transaction, as well as HEICO’s in-house legal department.
HEICO Corporation is primarily engaged in the design, production, servicing and distribution of products and services to certain niche segments of the aviation, defense, space, medical, telecommunications and electronics through its Hollywood, Florida-based Flight Support Group and its Miami, Florida-based Electronic Technologies Group. HEICO’s customers include the majority of the world’s airlines and overhaul shops, as well as many defense and space contractors and military agencies around the world, in addition to medical equipment manufacturers, telecommunications and electronics. For more information about HEICO, please visit our website at www.heico.com.
Certain statements contained 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 or implied by these forward-looking statements due to factors such as: the severity, scale and duration of the COVID-19 pandemic; the liquidity of HEICO and the amount and timing of cash generation; decline in commercial air travel caused by the COVID-19 pandemic and its aftermath, airline fleet changes or airline purchasing decisions, which may result in lower demand for our goods and services ; product specification costs and requirements, which could increase our costs to fulfill contracts; governmental and regulatory requirements, 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 price points, which could reduce our sales or increase our sales; difficulties in product development or manufacturing, which could increase our product development and manufacturing costs and delay sales; our ability to make acquisitions and realize operating synergies from acquired businesses; customer credit risk; interest, foreign exchange and income tax rates; economic conditions, including the effects of inflation, within and outside the aviation, defense, space, medical, telecommunications and electronics industries, that could negatively impact our costs and revenues; and defense spending or budget cuts, which could reduce our defense-related revenues. Parties receiving this material are encouraged to review all filings by HEICO 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 as required by applicable law.
Victor H. Mendelson (305) 374-1745 ext. 7590
Carlos L. Macao, Jr. (954) 987-4000 ext. 7570
THE SOURCE: HEICO Company
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