HEICO Corporation Acquires Majority of Growing Niche Technology Components Maker

Partners with owners and managers of Ironwood Electronics

EAGAN, MN and MIAMI, FL/ACCESSWIRE/September 1, 2022/ HEICO Corporation (NYSE: HEI.A and HEI.A) today announced that its electronics technology group has acquired approximately 80% of the share capital of technology component company Ironwood Electronics, Inc. (“Ironwood”) in cash paid at closing, plus cash consideration payable if Ironwood achieves certain earnings targets. The balance of Ironwood shares will continue to be held by Ironwood Chairman and CEO David Struyk and other key executives. No other financial information was disclosed.

HEICO said it expects the acquisition to be earnings accretive within a year of the acquisition.

Founded in 1986, Ironwood is a leading designer and manufacturer of high performance sockets and test adapters for semiconductor device engineering and production. Its products are used by semiconductor designers and manufacturers, among others, for validation and critical testing, as well as for additional applications. Ironwood’s plugs and adapters are also used by technology and electronics designers and producers for development and production purposes in their systems.

Among the integrated circuit (“IC”) packages covered by Ironwood’s products are QFN, BGA, SOIC, QFP, LGA, WLCSP and other surface mount technology (“SMT”) packages. Ironwood’s line of Gigahertz (“GHz”) sockets with 6 different contact technologies support bandwidth up to 110 GHz, up to 10,000 pins with pitch as small as 0.2 mm and up to to 500,000 insertions with the smallest footprint in the industry.

Ironwood, based in Eagan, MN, employs approximately 75 people to design, manufacture and sell its products. David Struyk will remain as Ironwood’s CEO and major shareholder, and other Ironwood executives will remain in their pre-closing roles. HEICO also said it does not expect any significant revenue from team members as a result of the acquisition and that it expects Ironwood to continue operating from from its current location using its current name.

David Struyk, Ironwood’s largest shareholder and CEO, said, “We wanted to partner with a successful and growing company that would be dedicated to our employees and our customers. HEICO is a great home that allows us to continue to grow our business organically and through acquisitions. , while maintaining our entrepreneurial operating style and continuing to deliver our best products to our customers. »

Laurans A. Mendelson, President and CEO of HEICO, and Victor H. Mendelson, HEICO Co-President and CEO of its Electronics Technology Group, said, “Dave Struyk and his team at Ironwood have created a unique niche company that blends perfectly with HEICO because, among other things, we share the same commitment to quality, technology, growth, people and customers. We welcome everyone at Ironwood to the HEICO family, where we look forward to more success together.

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, magnitude and duration of the pandemic; the liquidity of HEICO and the amount and timing of cash generation; declines in commercial air travel caused by the pandemic and its aftermath, airline fleet changes or airline purchasing decisions, which could 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 sectors, 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.

CONTACT

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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