South Windsor, CT and Miami, FL — HEICO Corporation (NYSE: HEI.A and HEI) today announced its Flight Support Group has acquired the Aerial Delivery and Descent Devices divisions of Capewell Aerial Systems (“Capewell”) for cash at closing. Additional financial details were not disclosed.
HEICO stated that it expects the acquisition to be accretive to its earnings within the year following closing.
Connecticut-based Capewell is a leading provider of proprietary aircraft cockpit emergency egress and aerial delivery products for various commercial aerospace and defense uses. It is a critical supplier to a wide-ranging customer base that includes leading OEMs, end-users, and distributors. Capewell’s highly engineered product portfolio encompasses emergency descent devices (“EDDs”), personnel and cargo parachute products, heavy airdrop platforms, and other highly-engineered products.
The Company’s history dates back to 1881 in Hartford, Connecticut. Capewell expanded its product offering in 1939, when it collaborated with the US government to develop specialized hardware for paratroopers. Capewell’s hardware has been standard equipment on US military parachutes since the first Army Airborne parachute units were trained at Fort Benning, Georgia, in 1942. In the decades since, Capewell expanded its development and manufacturing of a full-range of descent and delivery systems for military and commercial applications.
The Survivability division of Capewell will be retained by Argosy Private Equity of Wayne, PA, under the Aerial Machine & Tool Corp brand.
Capewell adds additional products and capabilities to HEICO’s rapidly-growing and highly-successful Specialty Products Group operations which are dedicated to manufacturing high-reliability, mission-critical components for primarily aerospace and defense customers.
Laurans A. Mendelson, HEICO’s Chairman and Chief Executive Officer, along with Eric A. Mendelson, HEICO’s Co-President and CEO of its Flight Support Group commented, “We are proud to welcome Capewell and its Team Members into the HEICO family. Capewell’s products are manufactured to the highest reliability and product quality standards, as they are responsible for ensuring pilot and troop safety worldwide. We look forward to supporting Capewell’s growth and building on its storied legacy.”
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.