HEICO’s Santa Barbara Infrared subsidiary acquires 85% of Sensor Technology Engineering
HOLLYWOOD, Fla. & SANTA BARBARA, Calif.--(BUSINESS WIRE)-- HEICO Corporation (NYSE:HEI) (NYSE:HEI.A) announced today that its Santa Barbara Infrared, Inc. (“SBIR”) subsidiary acquired 85% of the business and assets of Sensor Technology Engineering, Inc. (“Sensor Tech”) in an all cash transaction. SBIR is part of HEICO’s Electronic Technologies Group.
HEICO stated that it expects the acquisition to be accretive to its earnings within a year following the purchase. Further financial terms and details were not disclosed.
Sensor Tech, which was founded in 1996 and is located in Goleta, CA, a neighboring city of Santa Barbara, is the leading designer and manufacturer of sophisticated nuclear radiation detectors for law enforcement, homeland security and military applications. Sensor Tech is well known for its highly sensitive, reliable and easy-to-use detectors, including its critically acclaimed Radiation Pager, which is the most sensitive radiation detector for its size commercially available and is hundreds of times more sensitive than Geiger-Muller (GM) detectors of similar size.
Sensor Tech’s two founders own the remaining 15% of the business and will continue to manage it in their existing roles. HEICO stated that it does not expect any staff turnover to result from the acquisition.
SBIR’s President & Co-Founder, Steve McHugh, stated, “We have known the Sensor Tech team for decades and are enthusiastic about adding this talented group, along with their important products to our Company.”
Laurans A. Mendelson, HEICO’s Chairman & Chief Executive Officer, and Victor H. Mendelson, HEICO’s Co-President and CEO of its Electronic Technologies Group, jointly noted, “Known for its high quality and excellent service, Sensor Tech is considered the radiation detection standard by several US Government agencies and this is precisely the kind of mission-critical, high-reliability business HEICO values most. We welcome the Sensor Tech team to the HEICO family.”
Located in Santa Barbara, CA, SBIR designs and manufactures the world’s most technologically advanced test instrumentation used to test, calibrate and validate the performance of Visible, Near Infrared (NIR), SWIR, MWIR, LWIR, Laser and Electro-Optical (E-O) sensor components and systems. More information can be found at www.sbir.com.
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: lower demand for commercial air travel or 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 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.
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Victor H. Mendelson, 305-374-1745
Carlos L. Macau, Jr., 954-987-4000
Source: HEICO Corporation