Partners with the owners and managers of Ironwood Electronics
EAGAN, MN and MIAMI, FL / ACCESSWIRE / September 1, 2022 / HEICO Corporation (NYSE:HEI.A and HEI.A) today announced that its Electronic Technologies Group acquired approximately 80% of the capital stock of technology component company Ironwood Electronics, Inc. ("Ironwood") for cash paid at closing, plus additional cash consideration to be paid if Ironwood meets certain earnings targets. The balance of Ironwood's shares will continue to be owned by Ironwood's Chief Executive Officer, David Struyk, and other key managers. Further financial information was not disclosed.
HEICO stated that it expects the acquisition to be accretive to its earnings within the year following acquisition.
Founded in 1986, Ironwood is a leading designer and manufacturer of high performance test sockets and adapters for both engineering and production use of semiconductor devices. Its products are utilized by, among others, semiconductor designers and manufacturers for critical validation and testing, as well as additional applications. Ironwood's sockets and adapters are also used by technology and electronics designers and producers for both development and production purposes in their systems.
Among the Integrated Circuit ("IC") packages Ironwood's products cover are QFN, BGA, SOIC, QFP, LGA, WLCSP and other Surface Mount Technology ("SMT") packages. Ironwood's Gigahertz ("GHz") line of sockets with 6 different contact technologies supports up to 110 GHz bandwidth, up to 10,000 pins with a pitch as small as 0.2mm, and up to 500,000 insertions with the smallest footprint in the industry.
Eagan, MN-based Ironwood employs approximately 75 people in the design, manufacture and sale of its products. David Struyk will remain as Ironwood's CEO and a major shareholder, and Ironwood's other management will remain in their pre-closing roles. HEICO also stated that it does not expect any material Team Member turnover to result from the acquisition and that it expects Ironwood to continue operating from its current location utilizing its existing name.
David Struyk, Ironwood's principal shareholder and CEO, remarked, "We wanted to partner with a successful and growing company which would be dedicated to our people and our customers. HEICO is an excellent home that allows us to continue growing our business organically and through acquisitions, while maintaining our entrepreneurial operating style and continuing to deliver our best-in-class products to our customers."
Laurans A. Mendelson, HEICO's Chairman & Chief Executive Officer, along with Victor H. Mendelson, HEICO's Co-President and Chief Executive Officer of its Electronic Technologies Group, commented, "Dave Struyk and his team at Ironwood have created a unique, niche business that pairs perfectly with HEICO because, among other things, we share the same commitment to quality, technology, growth, people and customers. We welcome everyone at Ironwood to the HEICO family, where we look forward to more successes together."
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: the severity, magnitude and duration of the Pandemic; HEICO's liquidity and the amount and timing of cash generation; lower commercial air travel caused by the Pandemic and its aftermath, 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 and manufacturing 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, including the effects of inflation, 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.
Victor H. Mendelson (305) 374-1745 ext. 7590
Carlos L. Macau, Jr. (954) 987-4000 ext. 7570
SOURCE: HEICO Corporation
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