HEICO Corporation Agrees to Make Major and Highly Complementary Acquisition

HOLLYWOOD, FL and PEACHTREE CITY, GA / ACCESSWIRE / May 15, 2023 / HEICO Corporation (NYSE:HEI.A)(NYSE:HEI) today announced that it entered into an agreement to acquire Wencor Group ("Wencor") from affiliates of Warburg Pincus LLC and Wencor's management for $1.9 billion in cash and $150 million in HEICO Class A Common Stock¹ to be paid at closing, or $2.05 billion in the aggregate.

The transaction will be HEICO's largest ever in purchase price, as well as revenues and income acquired. Wencor will become part of HEICO's Flight Support Group.

HEICO stated that it expects the highly synergistic acquisition to be accretive to its earnings within the year following the closing. Further, HEICO anticipates it will continue to achieve its often-articulated growth objectives in the years following the closing.

Founded in 1955, Wencor is a large commercial and military aircraft aftermarket company offering factory-new FAA-approved aircraft replacement parts, value-added distribution of high-use commercial & military aftermarket parts and aircraft & engine accessory component repair and overhaul services.

Wencor is based in Peachtree City, GA and provides its parts and services internationally, employing approximately 1,000 team members in 19 facilities around the United States. HEICO currently employs approximately 9,000 Team Members at over 100 facilities worldwide. Wencor's customers include airlines worldwide, aircraft maintenance repair and overhaul companies, military agencies and defense contractors.

Wencor's parts and repairs are found in hydraulic, pneumatic, electronic and electro-mechanical, cockpit and galley systems throughout numerous aircraft models and provide Wencor's customers with significant cost savings.

HEICO anticipates that Wencor will generate approximately $724 million and $153 million in adjusted proforma revenues and EBITDA, respectively, in calendar year 2023.² Further, HEICO expects to receive estimated tax benefits of approximately $75 million that will be realized through fiscal year 2038. Including the estimated tax benefits and without accounting for any expected synergies, HEICO anticipates that its effective purchase price multiple will be approximately 12.9 times Wencor's projected proforma adjusted EBITDA.