MIAMI and HOLLYWOOD, Fla., Sept. 11, 2007 (PRIME NEWSWIRE) -- HEICO Corporation (NYSE:HEI-A) (NYSE:HEI) today announced that its Electronic Technologies Group ("ETG") has acquired all of the capital stock of EMD Technologies, Inc. ("EMD") for an undisclosed amount of cash. In addition to the closing consideration, the seller could receive additional cash consideration if EMD meets certain earnings targets over the next five years.
Based near Montreal, Canada, EMD designs and produces a patented line of high voltage energy generators for medical, baggage inspection and industrial imaging systems. EMD also offers a patented line of high frequency power delivery systems for the commercial sign industry under the "Transfotec" name.
HEICO stated that it expects the acquisition to be accretive to its earnings within the first year of ownership. Additional financial details were not disclosed. HEICO noted that EMD's management will remain with the company after the closing and that it does not expect any staff turnover resulting from the purchase. HEICO also stated that it expects EMD to remain in its current location.
Laurans A. Mendelson, HEICO's Chairman, President and Chief Executive Officer remarked, "EMD is a great fit for HEICO. It expands the ETG's extensive and fast-growing niche medical subcomponents business and broadens our high-voltage product lines. We are excited to add fast-growing and innovative EMD to our company, as they are well known for inventing revolutionary, market-changing designs and their innovative management is a perfect fit for our rapidly growing company. We are pleased that EMD's existing and talented management, led by Vital Dumais, will continue to lead the business under our ownership."
EMD's Co-Founder and President, Vital Dumais, commented, "We are delighted and thrilled to join the HEICO family. Our technologies and products, combined with HEICO's solid reputation, its financial strength and its existing presence in the industry, will contribute to reinforce and accelerate our leadership position in our business segment, to the benefit of our customers, our employees, our suppliers as well as HEICO's shareholders."
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.