HEICO Corporation signs agreement to buy AeroAntenna Technology

HEICO Corporation has reported that its Electronic Technologies Group entered into a stock purchase agreement to acquire 100% of the stock of AeroAntenna Technology Inc. (AAT). Chatsworth, CA-based AAT is a leader in the design and production of high performance active antenna systems for critical defense applications, precision guided munitions, commercial aircraft and other commercial uses. AAT is a known leader in numerous antenna types, including GPS, aircraft navigation and satellite communications antennas. HEICO stated the purchase price is US$316.5m in cash to be paid at closing, subject to typical post-closing adjustments, and a US$20m cash earnout payment if AAT meets its earnings targets. This transaction is the largest purchase in HEICO’s history. The purchase price includes approximately US$37m to compensate the sellers for certain tax elections which will result in a net cash tax benefit to HEICO worth at least that amount. HEICO expects the acquisition to be accretive to its earnings within the first year following closing and stated that the purchase price falls within the typical earnings multiple the Company targets for acquisitions. HEICO will finance the purchase through its cash balances and existing revolving credit facility. Additional financial details were not disclosed.