Flight Support Group to Acquire Ridge Engineering, Inc. and The Bechdon Company, Inc.
HOLLYWOOD, FL and HAMPSTEAD, MD / ACCESSWIRE / July 6, 2021 / HEICO Corporation (NYSE:HEI.A and HEI) today announced that its Flight Support Group entered into a purchase agreement to acquire 89% of Ridge Engineering, Inc. ("Ridge") and The Bechdon Company, Inc. ("Bechdon") (together, the “Companies”) for cash at closing, plus potential additional cash consideration to be paid if certain post-closing earnings levels are attained. Additional financial details were not disclosed.
HEICO expects the acquisitions to be accretive to its earnings within the first year following closing.
Founded in 1967, Hampstead, MD-based Ridge is a leader in performing tight-tolerance machining and brazing of large-sized parts in mission-critical defense and aerospace applications.
Upper Marlboro, MD-based Bechdon was founded in 1966 and provides machining, fabrication, and welding services for aerospace, defense, and other industrial applications. Bechdon is a key subcontractor to Ridge for subcomponents used in Ridge's final assemblies.
David Tracey, whose father Robert founded Ridge, will continue to lead the Company in his existing role as President, along with Rick Troutman, Ridge's CFO. Together, Mr. Tracey and Mr. Troutman will hold 11% ownership of the Companies.
Ridge operates out of an 87,500-square-foot facility and is constructing an 87,000-square-foot facility on an adjacent lot to support the company's anticipated growth. Bechdon currently operates out of a 42,000-square-foot facility. Ridge and Bechdon together employ 196 team members, and HEICO stated that it does not expect any material staff turnover to result from the acquisition.
Laurans A. Mendelson, Chairman and Chief Executive Officer of HEICO Corporation, along with Eric A. Mendelson, HEICO's Co-President and Chief Executive Officer of HEICO's Flight Support Group, jointly commented, "Over the past 31 years, we've visited countless aerospace manufacturing facilities, and we've never before seen such specialized machined and brazing capabilities under one roof that supply products critical to the aerospace industry. We welcome David, Rick, and the exceptionally skilled team at Ridge and Bechdon to the HEICO family of entrepreneur-driven companies."
David Tracey, Ridge's President, remarked, "Ridge Engineering, founded in 1967 has enjoyed two generations of steady growth and a long history of fulfilling the critical requirements of our customers. We are excited to team with HEICO, which will enable us to launch to the next level requirements of our industry. HEICO is the perfect home for Ridge and Bechdon, and we're honored to become part of the HEICO family."
The transaction is subject to clearance under the Hart-Scott-Rodino Antitrust Improvements Act and other customary closing conditions. Closing is expected promptly after receipt of antitrust clearance and satisfaction of the closing conditions.
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 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.
CONTACT:
Eric A. Mendelson (954) 744-7555
Carlos L. Macau, Jr. (954) 987-4000
SOURCE: Heico Corporation
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