HOLLYWOOD, Fla., May 26, 2006 (PRIMEZONE) -- HEICO Corporation (NYSE:HEI.A) (NYSE:HEI) today announced that its Flight Support Group, through its HEICO Aerospace Holdings Corp. subsidiary, has acquired Arger Enterprises, Inc. and its related companies from Melrose PLC for cash consideration.
HEICO stated that it expects the transaction to be accretive to its earnings by the end of the first year of its ownership. Additional financial details were not disclosed.
Arger, based in Reno, Nevada, is believed to be one of the world's largest designers and distributors of FAA-Approved aircraft and engine parts primarily for the commercial airline market. Founded in 1977, Arger operates engineering, warehousing, sales, and administrative facilities in Reno, NV and Miami, FL and has sales representatives stationed throughout the USA, Europe and Asia. Antony Ricketts, Arger's President, will continue with HEICO in his current position.
HEICO Aerospace Holdings Corp., owned 20% by Lufthansa Technik AG, is recognized as the world's largest independent designer, manufacturer, and distributor of FAA-Approved jet engine and aircraft component replacement parts, and a leader in the overhaul and repair markets for jet engine and aircraft components. This acquisition allows HEICO to broaden its aircraft parts portfolio through its HEICO Parts Group and further strengthens its HEICO Distribution Group following its recent acquisition of Seal Dynamics.
August Henningsen, Chairman of the Executive Board and Chief Executive Officer of Lufthansa Technik AG, remarked "We are pleased that HEICO has purchased Arger and will continue to support and distribute Arger's cost saving products to airlines around the world. Arger's products will fit well with HEICO's industry leading parts portfolio, and airlines worldwide will be able to count on HEICO to continue leading the independent replacement parts industry."
Laurans A. Mendelson, HEICO Corporation's Chairman, President, and Chief Executive Officer, commented "Arger is the perfect addition to HEICO as it distributes an extensive list of FAA-Approved parts produced by leading aerospace manufacturers, and develops its own FAA-Approved parts. Not only are Arger's quality products well respected and purchased by most of the world's airlines, but there are excellent synergies between Arger and HEICO's existing parts and distribution businesses."
Antony Ricketts, Arger's President commented, "HEICO is the perfect partner for Arger. HEICO's impeccable reputation, record of innovation, financial strength, and existing presence in the industry will help Arger and its highly regarded principals grow their respective businesses. HEICO brings strategic product breadth and technical expertise required to succeed in today's marketplace."
HEICO Corporation is engaged primarily in certain niche segments of the aviation, defense, space and electronics industries through its Hollywood, FL-based HEICO Aerospace Holdings Corp. subsidiary and its Miami, FL-based HEICO Electronic Technologies Corp. subsidiary. HEICO's customers include a majority of the world's airlines and airmotives as well as numerous defense and space contractors and military agencies worldwide in addition to telecommunications, electronics and medical equipment manufacturers. For more information about HEICO, please visit our web site at http://www.heico.com.
Certain statements in this press release constitute forward-looking statements, which are subject to risks, uncertainties and assumptions. HEICO's actual results could differ materially from those expressed in or implied by those forward-looking statements as a result of factors, including, but not limited to: lower demand for commercial air travel or airline fleet changes, 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 or space spending by U.S. and/or foreign customers, or competition from existing and new competitors, which could reduce our sales; HEICO's ability to introduce new products and product pricing levels, which could reduce our sales or sales growth; HEICO's ability to make acquisitions and achieve operating synergies from acquired businesses, customer credit risk, interest rates and economic conditions within and outside of the aerospace, defense, space 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.