HEICO Corporation 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.
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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, Iowas-based MMS designs, manufactures and sells 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.
HEICO's Flight Support Group acquired Astroseal Products Manufacturing Corp.. Astroseal makes expanded foil mesh which is integrated into composite aerospace structures for lightning strike protection in fixed and rotary wing aircraft.
Nearly all aircraft make use of composites needing Astroseal's Astrostrike products for both shielding and lightning protection on large areas of the fuselage, wings, empennage, stabilizers, engine nacelles, propellers, winglets and the rotor blades.
Composite materials are increasingly used in aviation applications, and expanded foil mesh is the most widely used technology to protect composite structures when struck by lightning.
Founded in 1965, Astroseal is located in Chester, Ct. Most of Astroseal's staff will remain in place after the acquisition and HEICO does not anticipate any changes to Astroseal's quality, customer relationships, name or location. ■