HEICO Corporation Makes Two More Important Acquisitions

HEICO Corporation

today announced that it has completed two acquisitions, in addition to one announced last week. Both purchases were made for cash, but other transaction terms and financial details were not disclosed. HEICO stated that it expects both acquisitions to be accretive to its earnings within the first year after the closing. MIDWEST MICROWAVE SOLUTIONS, INC. The Company's Electronic Technologies Group completed the acquisition of 80.1% of the shares of privately-held Midwest Microwave Solutions, Inc. ("MMS") from MMS's founders/managers. Hiawatha, IA-based MMS designs, manufactures and sells unique Size, Weight, Power and Cost (SWAP-C) optimized Communications and Electronic Intercept Receivers and Tuners for military and intelligence applications. MMS' front-end RF and Microwave hardware is used by the U.S. Intelligence Community for Signal Intercept applications, such as search, data collection, precision geolocation, direction finding and beamforming operations. Tracing its roots to 2005, MMS will continue to be 19.9%-owned by its founders and senior management team of President Phil Rezin, Chief Operating Officer Steve Wilson, and Chief Scientist Mike Horn. The retained interest is subject to customary "call" and "put" rights for all shareholders commencing five years after the closing. All three shareholders will remain in their pre-closing positions with MMS. MMS, which employs approximately 25 people, will continue its operations substantially as they existed before the purchase, including remaining in the same location and retaining its name. HEICO also stated that it does not expect any employee turnover to result from the acquisition. Phil Rezin, MMS's Co-Founder and President, commented, "We're very excited to partner with HEICO, as they understand perfectly how to allow successful businesses like MMS to thrive under existing management. HEICO shares our commitment to excellent customer service through superior designs and fast turn times, so we know our customers and Team Members will continue to be well served." Laurans A. Mendelson, HEICO's Chairman and CEO, along with Eric A. Mendelson and Victor H. Mendelson, HEICO's Co-Presidents, remarked, "MMS expands HEICO's intelligence gathering equipment businesses and perfectly matches with HEICO—it makes difficult to design and unique devices, it's focused on customer satisfaction and growth and, most important, it has a top-notch and committed management team. Phil Rezin's, Steve Wilson's and Mike Horn's desire to retain significant ownership shows one of the many reasons we have so much confidence in them. We look forward to a long and fruitful future together."