HOLLYWOOD, Fla. and CAMARILLO, Calif., Sept. 12, 2013 (GLOBE NEWSWIRE) -- HEICO Corporation (NYSE:HEI.A) (NYSE:HEI) today announced it has entered into a definitive agreement to acquire Lucix Corporation, a leading designer and manufacturer of high performance, high reliability microwave modules, units, and integrated sub-systems for commercial and military satellites. The purchase will be made for an undisclosed amount of cash to be paid at closing and future potential cash payments if Lucix should meet certain performance criteria. Lucix's financial information was not disclosed.
HEICO stated that it expects the acquisition to be accretive to its earnings within the first year following the acquisition. The acquisition is subject to expiration of the regulatory waiting period and is expected to close within 60 days.
Founded in 1999, Lucix's products include converters, receivers, transmitters, amplifiers, frequency sources and related sub-systems that address all major satellite frequencies including UHF, L, S, C, Ku, Ka, and Q bands. The majority of its revenue is derived from commercial satellite payload hardware and its products can be found on more than 40 orbiting Geosynchronous Orbit ("GEO") satellites.
Headquartered in Camarillo, CA, Lucix employs approximately 140 people. Lucix's entire management team, led by its Chief Executive Officer, Dr. Mark Shahriary, will remain with the company in their existing positions and HEICO stated that it does not expect any employee turnover to result from the acquisition.
Laurans A. Mendelson, HEICO's Chairman and Chief Executive Officer, commented, "Lucix is another perfect fit for HEICO. This acquisition expands our very successful satellite and space component operations by adding a team of some of the world's most admired designers and makers of satellite electronics. Mark Shahriary, a rare talent, together with his highly respected and talented team are well known experts in satellite design and production."
Dr. Shahriary remarked, "We couldn't be happier that we chose HEICO to be our new parent. They understand the absolute requirements for quality, service and innovation, while also understanding the importance of allowing Lucix to continue operating in the same manner as it has been run for many years. Joining with HEICO will also allow us to pursue many new opportunities."
Victor H. Mendelson, HEICO's Co-President and the President and Chief Executive Officer of its Electronic Technologies Group, noted, " Lucix's purchase is consistent with our acquisition strategy: acquiring successful, well-managed, technical businesses which continue to operate post-closing just as they operated pre-closing. We are committed to supporting Lucix in its growth needs with the remarkable existing management team they currently have and remaining in their current location and facilities. We are excited for all of Lucix's Team Members to join the HEICO family."
In addition to Dr. Shahriary's and management's ownership, Lucix's other owners are primarily three venture capital funds: Palisades Ventures, Saints Capital and Shepherd Ventures.
Moelis & Company acted as exclusive financial advisor to Lucix.
HEICO Corporation is engaged primarily in certain niche segments of the aviation, defense, space, medical, telecommunications and electronics industries through its Hollywood, FL-based Flight Support Group and its Miami, FL-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 web site at http://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, but not limited to: lower demand for commercial air travel or airline fleet changes, 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; HEICO's ability to introduce new products and product pricing levels, which could reduce our sales or sales growth and HEICO's ability to make acquisitions and achieve operating synergies from acquired businesses, customer credit risk, interest and income tax rates and economic conditions within and outside of the aviation, defense, space, medical, telecommunications and electronics industries, which could negatively impact our costs and revenues. 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.