The Wencor Group acquisition, valued at $2.05 billion, includes $1.9 billion in cash and $150 million in HEICO Class A Common Stock.
HEICO Corporation, a prominent aerospace and defense technology company, has successfully concluded its acquisition of Wencor Group, a renowned commercial and military aircraft aftermarket company. The acquisition, valued at $2.05 billion, includes $1.9 billion in cash and $150 million in HEICO Class A Common Stock. This transaction represents HEICO’s largest-ever purchase in terms of both price and acquired revenues and income.
Wencor Group, established in 1955, specializes in various aviation aftermarket services, such as factory-new FAA-approved aircraft replacement parts, distribution of commercial and military aftermarket parts, and repair and overhaul of aircraft and engine accessory components. The acquisition underscores HEICO’s strategic focus on expanding its Flight Support Group, reinforcing its position as a leading provider of aircraft maintenance, repair, and overhaul services.
Laurans A. Mendelson, ‘s Chairman and Chief Executive Officer, HEICO along with Eric A. Mendelson, ‘s Co-President and Chief Executive Officer, HEICO Flight Support Group said, “Wencor is a perfect and highly complementary fit with HEICO, as the combination will be transformative, providing a unique and growing portfolio of proprietary cost-saving solutions for our airline and OEM customers. We welcome Shawn Trogdon, Wencor’s talented CEO who will continue to lead Wencor, and the phenomenal Wencor Team to the HEICO family. HEICO has a long history of appreciation for its Team Members by providing an excellent working environment, advancement opportunities and participation as HEICO owners through our 401k plan.”
The synergies between HEICO and Wencor are expected to enhance the overall capabilities of both companies. The acquisition is anticipated to contribute positively to HEICO’s earnings within the first year following the closing. The strategic move aligns with HEICO’s ongoing growth objectives and signifies the company’s dedication to providing comprehensive solutions and top-notch services to its customers.
Wencor Group, headquartered in Peachtree City, Georgia, operates internationally and employs around 1,000 team members across 19 facilities in the United States. Its extensive experience in aircraft parts and repairs encompasses hydraulic, pneumatic, electronic, electro-mechanical, cockpit, and galley systems across various aircraft models. This expertise translates into significant cost savings for its customers.
Shawn Trogdon, Chief Executive Officer, Wencor said, “This is an exciting day for Wencor and our talented team in having the opportunity to join a world-class organization like HEICO. It’s unique to find two companies who align so well on culture, values, and commitment to their customers, suppliers, and Team Members. This alignment and combination brings an unmatched value proposition in our industry that will help to further accelerate growth, innovation, and development of highly reliable cost-saving solutions for our customers. I’m extremely proud of our team’s accomplishments and we look forward to continuing our journey as part of HEICO. I want to thank the Warburg Pincus team for their support and partnership over the years, which has helped enable our success.”
The acquisition further solidifies HEICO’s market presence and broadens its offerings to meet the evolving needs of the aerospace and defense industries. With Wencor now part of HEICO’s portfolio, the company is well-positioned to deliver enhanced value to its customers through innovative solutions, efficient services, and seamless integration of complementary capabilities.
Dan Zamlong, Managing Director, Warburg Pincus said, “We would like to congratulate both the Wencor and HEICO teams on this milestone. Wencor has developed into a leading provider of aftermarket solutions to the aerospace and defense industries during our ownership period and is well positioned for future growth as part of HEICO. We have a tremendous amount of appreciation for the hard work and dedication to building a high-quality company with a compelling value proposition by every Wencor Team Member and wish them continued success as part of the HEICO team.”
Laurans A. Mendelson, Chairman and Chief Executive Officer of HEICO, and Eric A. Mendelson, Co-President and Chief Executive Officer of HEICO’s Flight Support Group, expressed their enthusiasm for the acquisition. They highlighted the complementary nature of the two companies and their shared commitment to delivering unparalleled solutions and value to customers. The addition of Wencor to HEICO’s family is expected to further accelerate growth, innovation, and the development of cost-saving solutions for the aerospace industry.
Shawn Trogdon, CEO of Wencor Group, echoed the sentiment of alignment and shared values between the two companies. He emphasized the unique opportunity to join forces with HEICO and enhance the value proposition for customers, suppliers, and team members. The acquisition is expected to foster accelerated growth, innovation, and the continued development of reliable and cost-effective solutions.
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As a result of this acquisition, HEICO anticipates a net debt-to-EBITDA leverage ratio below 3:1, returning to historical levels within a reasonable timeframe. The strategic integration of Wencor into HEICO’s operations is expected to yield substantial synergies, strengthening both companies and providing meaningful growth opportunities. The acquisition of Wencor Group by HEICO underscores the company’s commitment to advancing its position in the aerospace and defense industries, enhancing its service offerings, and delivering exceptional value to its customers and stakeholders.
