Asset Purchase and Exclusive License for Dukane Seacom subsidiary cements leadership position
SARASOTA, FL and HOLLYWOOD, FL / ACCESSWIRE / April 3, 2023 / HEICO Corporation (NYSE:HEI and HEI.A) today announced that its Dukane Seacom subsidiary entered into an exclusive license and acquired key assets for the Aircraft Emergency Locator Transmitter ("ELT") product line from Honeywell International ("Honeywell"). The transaction was structured as an exclusive perpetual license and asset purchase. Dukane Seacom is part of HEICO's Electronic Technologies Group. Transaction terms and financial details were not disclosed.
HEICO stated that it expects the license and asset acquisition to be accretive to its earnings in the year following closing.
Honeywell has been the commercial aviation industry's leading ELT supplier, with more than 40 years of experience and over 40,000 units delivered. The RESCU 406 ELT family which was subject to the transactions is utilized on nearly all air transport commercial aircraft models, in addition to numerous business, commuter and rotary wing aircraft.
ELTs provide critical emergency transmission signals in the event of aircraft impact on land or water to enable first responders to locate the aircraft. The devices meet stringent performance and regulatory standards and are mandated for use onboard commercial transport category aircraft, as well as certain military aircraft.
The transaction provides Dukane Seacom with all rights to produce, sell and repair both fixed and portable Honeywell ELTs, as well as various support equipment. Prior to the transaction, Dukane Seacom and Honeywell had been longstanding technology and manufacturing partners for ELT products. Dukane Seacom is now solely responsible for the activities formerly performed by Honeywell and will conduct its engineering, production and customer support functions from Dukane Seacom's Sarasota, FL facility.
Laurans A. Mendelson, HEICO's Chairman and Chief Executive Officer, along with Victor H. Mendelson, HEICO's Co-President and Chief Executive Officer of its Electronic Technologies Group, and Anish V. Patel, President of Dukane Seacom, remarked, "This purchase deepens Dukane Seacom's long-term commitment to emergency location and further affirms our leadership position in this high performance market."
Sarasota, FL-based Dukane Seacom Inc. is the world's leading supplier of emergency locator devices for the aviation and marine markets. Dukane Seacom beacons are installed on the global commercial and business jet aircraft fleets, military fixed and rotary wing aircraft, as well as maritime and specialty underwater applications. For more information please visit: www.dukaneseacom.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 will 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, but not limited to: the severity, magnitude and duration of public health threats, such as the COVID-19 pandemic ("Health Emergencies"); HEICO's liquidity and the amount and timing of cash generation; lower commercial air travel caused by Health Emergencies and their 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, including obtaining any applicable domestic and/or foreign governmental approvals, 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
Carlos L. Macau, Jr., (954) 987-4000
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