RE: LeoThread 2024-11-03 06:11

HEICO Corporation: A Silent Giant in Aerospace
Founded in 1957, HEICO Corporation has quietly become a powerhouse in the aerospace, industrial, defense, and electronics industries. The company's commitment to innovation and cost-effective solutions has made its products indispensable components in large commercial, regional, business, and military aircraft. Beyond aviation, HEICO's technology extends to industrial turbines, targeting systems, missiles, and electro-optical devices.

Operating through its Flight Support Group and Electronic Technologies Group, HEICO has positioned itself at the forefront of technological advancements, offering essential solutions across multiple industries. With a market capitalization of over $29 billion and a year-to-date stock price increase of 34.77%, the company has demonstrated robust growth and resilience in a competitive market.

Buffett's Strategic Entry into Aerospace
Buffett's investment in HEICO represents 0.75% of the company's outstanding shares, signaling a significant endorsement from one of the world's most respected investors. This move aligns with Buffett's long-standing strategy of investing in companies with strong fundamentals and growth potential.

The aerospace and defense sector has been gaining investor attention due to increasing global security concerns and the resurgence of air travel post-pandemic. HEICO's diversified portfolio and consistent performance make it an attractive investment for Berkshire Hathaway, known for its cautious yet opportunistic investment approach.

if Warren Buffett has invested in this then I really should keep an eye on it, this means space X will most likely rise in value

From Wikipedia:

HEICO Corporation is an American aerospace and electronics company, which manufactures products found in aircraft, spacecraft, defense equipment, medical equipment, and telecommunications systems. Since the mid-1990s, HEICO has been organized into two divisions to address these different markets: Flight Support Group and Electronic Technologies Group.

HEICO's Flight Support Group is the largest independent provider of FAA-approved aircraft replacement parts.[4] It is a provider of aircraft accessories component repair and overhaul services for avionic, electro-mechanical, flight surface, hydraulic and pneumatic applications; commercial aviation and military aviation parts distribut٨ion; and a manufacturer ofother aircraft parts.

From SEC filing:

HEICO Corporation through its subsidiaries (collectively, “HEICO,” “we,” “us,” “our” or the “Company”) believes it is the world’s largest manufacturer of Federal Aviation Administration (“FAA”)-approved jet engine and aircraft component replacement parts, other than the original equipment manufacturers (“OEMs”) and their subcontractors. HEICO also believes it is a leading manufacturer of various types of electronic equipment for the aviation, defense, space, medical, telecommunications and electronics industries.

The Company was originally organized in 1957 as a holding company known as HEICO Corporation. As part of a reorganization completed in 1993, the original holding company (formerly known as HEICO Corporation) was renamed as HEICO Aerospace Corporation and a new holding corporation known as HEICO Corporation was created. The reorganization did not result in any change in the business of the Company, its consolidated assets or liabilities or the relative interests of its shareholders.

Our business is comprised of two operating segments:

The Flight Support Group. Our Flight Support Group (“FSG”), consisting of HEICO Aerospace Holdings Corp. and HEICO Flight Support Corp. and their collective subsidiaries, accounted for 57%, 50% and 52% of our net sales in fiscal 2022, 2021 and 2020, respectively. The FSG uses proprietary technology to design and manufacture jet engine and aircraft component replacement parts for sale at lower prices than those manufactured by OEMs. These parts are approved by the FAA and are the functional equivalent of parts sold by OEMs. In addition, the FSG repairs, overhauls and distributes jet engine and aircraft components, avionics and instruments for domestic and foreign commercial air carriers and aircraft repair companies as well as military and business aircraft operators.

The FSG also manufactures and sells specialty parts as a subcontractor for aerospace and industrial original equipment manufacturers and the United States ("U.S.") government. Additionally, the FSG is a leading supplier, distributor, and integrator of military aircraft parts and support services primarily to the U.S. Department of Defense, defense prime contractors, and foreign military organizations allied with the U.S. Further, the FSG is a leading manufacturer of advanced niche components and complex composite assemblies for commercial aviation, defense and space applications.

The FSG also engineers, designs and manufactures thermal insulation blankets and parts as well as removable/reusable insulation systems for aerospace, defense, commercial and industrial applications; manufactures expanded foil mesh for lightning strike protection in fixed and rotary wing aircraft; distributes aviation electrical interconnect products and electromechanical parts; overhauls industrial pumps, motors, and other hydraulic units with a focus on the support of legacy systems for the U.S. Navy; and performs tight-tolerance machining, brazing, fabricating and welding services for aerospace, defense and other industrial applications.

The Electronic Technologies Group. Our Electronic Technologies Group (“ETG”), consisting of HEICO Electronic Technologies Corp. and its subsidiaries, accounted for 43%, 50% and 48% of our net sales in fiscal 2022, 2021 and 2020, respectively. The ETG derived approximately 56%, 63% and 66% of its net sales in fiscal 2022, 2021 and 2020, respectively, from the sale of products and services to U.S. and foreign military agencies, prime defense contractors and both commercial and defense satellite and spacecraft manufacturers.

The ETG collectively designs, manufactures and sells various types of electronic, data and microwave, and electro-optical products, including infrared simulation and test equipment, laser rangefinder receivers, electrical power supplies, back-up power supplies, power conversion products, underwater locator beacons, emergency locator transmission beacons, flight deck annunciators, panels, and indicators, electromagnetic and radio frequency interference shielding and filters, high power capacitor charging power supplies, amplifiers, traveling wave tube amplifiers,

photodetectors, amplifier modules, microwave power modules, flash lamp drivers, laser diode drivers, arc lamp power supplies, custom power supply designs, cable assemblies, high voltage power supplies, high voltage interconnection devices and wire, high voltage energy generators, high frequency power delivery systems; memory products, including three-dimensional microelectronic and stacked memory, static random-access memory (SRAM), and electronically erasable programmable read-only memory (EEPROM); harsh environment electronic connectors and other interconnect products, radio frequency ("RF") and microwave amplifiers, transmitters, and receivers and integrated assemblies, sub-assemblies and components; RF sources, detectors and controllers, wireless cabin control systems, solid state power distribution and management systems, crashworthy

and ballistically self-sealing auxiliary fuel systems, nuclear radiation detectors, communications and electronic intercept receivers and tuners, fuel level sensing systems, high-speed interface products that link devices, high performance active antenna systems and airborne antennas for commercial and military aircraft, precision guided munitions, other defense applications and commercial uses; silicone material for a variety of demanding applications; precision power analog monolithic, hybrid and open frame components; high-reliability ceramic-to-metal feedthroughs and connectors, technical surveillance countermeasures (TSCM) equipment to detect devices used for espionage and information theft; rugged small-form factor embedded computing solutions; custom high power filters and filter assemblies; test sockets and adapters for both engineering and production use of semiconductor devices; and radiation assurance services and products.

HEICO has continuously operated in the aerospace industry for over 65 years. Since assuming control in 1990, our current management has achieved significant sales and profit growth through a broadened line of product offerings, an expanded customer base, increased research and development expenditures and the completion of a number of acquisitions. As a result of internal growth and acquisitions, our net sales from continuing operations have grown from $26.2 million in fiscal 1990 to $2,208.3 million in fiscal 2022, representing a compound annual growth rate of approximately 15%. During the same period, we improved our net income from $2.0 million to $351.7 million, representing a compound annual growth rate of approximately 18%.

HEICO Corporation (NYSE: HEI and HEI.A) is a successful and growing technology-driven aerospace, industrial, defense and electronics company. Since 1957, HEICO has thrived by providing customers with innovative and cost-saving products and services.

HEICO’s products are found on large commercial aircraft, regional, business and military aircraft, as well as on a large variety of industrial turbines, targeting systems, missiles and electro-optical devices.

HEICO Corporation operates in two segments, the Flight Support Group and the Electronic Technologies Group.

HEICO’s Flight Support Group is known globally as the premier provider of high-quality and cost-saving aftermarket parts supply and repair solutions.

These solutions include new parts design and manufacturing, proprietary Designated Engineering Representative (“DER”) repairs & overhauls, distribution and specialty product manufacturing. All major airlines are HEICO Flight Support Group customers. Our growing business also distributes non-HEICO-made parts, in addition to supplying critical components to original equipment manufacturers and the U.S. military. We are partnered with numerous airlines through innovative parts development arrangements.

HEICO’s Electronic Technologies Group is a trailblazer in the design, manufacture and sale of electrically and electro-optical engineered products used in the aerospace, defense, space, and electronics industries.

Examples of the Electronic Technologies Group’s specialized products include hybrid DC-to-DC Converters, Microwave Latching Ferrite Switches, High Voltage Cable Assemblies & Connectors, Infrared Cameras, Laser Rangefinder Receivers, Memory Modules, Digital Recorders, Harsh Environment Connectors, Power Supplies, Amplifiers, Shielding and numerous other specialty items.

By combining state-of-the-art technologies, a team of highly skilled Team Members and an indisputable commitment to quality, both segments have constantly delivered invaluable solutions to customers over the years, helping to position them as leaders within their industries.

1957
HEICO formed as Heinicke Instruments

1960
Initial Public Offering

1986
The company changes its name to HEICO Corporation

1990
The Board of Directors and management are reconstituted

1996
Electronic Technologies Group Founded

1997
Lufthansa Technik invests in 20% of HEICO’s Flight Support Group
HEICO Aerospace enters the Aircraft Accessory Component Repair & Overhaul business

1999
HEICO Corporation’s shares are listed on the New York
Stock Exchange

2001
HEICO Flight Support Group forms an innovative subsidiary with American Airlines, to develop aircraft parts.
Many more partnerships are formed with major airlines in the years that follow
2005
HEICO successfully enters aircraft parts distribution business with Seal Dynamics acquisition

2013
HEICO surpasses $1 Billion in sales
HEICO is named one of the Best Small Companies by Forbes Magazine for the seventh time
2015
Forbes World’s Most Innovative Growth Companies for the second time
HEICO completes 7 new acquisitions
2016
HEICO raises and pays 77th consecutive cash dividend since 1979
Forbes Most Trustworthy Companies in America

2019
HEICO completes 7 acquisitions in 12 months
Market cap passes $16 Billion
2022
HEICO Celebrates its 65th Anniversary

2023
HEICO completes acquisition of Wencor Group

https://heico.com/about-us/

Switchcraft

1946
Switchcraft, Inc. was established in 1946 to manufacture jacks, plugs, and switches, mainly for the communications industry. The original plant was located on West Diversey Street in Chicago. The company moved to a larger facility at 1328 North Halsted Street in 1948 and in 1958, the operation moved to a 185,000 square foot facility located at 5555 North Elston Avenue, which is still the headquarters and the largest of three manufacturing locations for the corporation today.

1977
In 1977, Switchcraft was bought by the Raytheon Corporation and it operated as an independent subsidiary in its Commercial division for twenty years. During this time, Switchcraft expanded its production capability to include vertical integration, for cost effective manufacturing in the United States. They also expanded into harsh environment connector products, which expanded the market growth of the company.

1997
In 1997 Raytheon made a strategic decision to focus solely on the defense industry. As a result, they divested their interests in all of their commercial holdings. At that time Switchcraft was sold to company management and a private equity company.

1999
In 1999, Switchcraft acquired Conxall, a manufacturer of circular connectors and cable assemblies, in order to expand their offering of harsh environment connectivity products. They are located in a 32,000 square foot facility in Villa Park, IL. This strategic acquisition helped to position Switchcraft for expanded growth in the Industrial Marketplace.

2011
In 2011, Switchcraft was acquired by HEICO Corporation and became part of their Electronic Technologies Group. Switchcraft is a major supplier of harsh environment connectivity products to the Industrial market and the premier connectivity provider to the Pro-Audio & Broadcast Industries.

HEICO Corporation Acquires Leading Business Jet In-Cabin Component Maker
Monday, 21 October 2024 08:30 AM

MIAMI, FL and DERBY, KS / ACCESSWIRE / October 21, 2024 / HEICO Corporation (NYSE:HEI.A)(NYSE:HEI) today announced that its Electronic Technologies Group acquired approximately 88% of Mid Continent Controls, Inc. ("MC2") for cash at closing. Key MC2 managers will continue to own the balance of the company. Additional financial details were not disclosed.

HEICO stated that it expects the acquisition to be accretive to its earnings within the year following the acquisition.

Derby, KS-based MC2 is a niche designer and manufacturer specializing in proprietary in-cabin power and entertainment components and subsystems for business jets. Its core products include power outlets, power distribution modules, cabin management systems, multimedia connectivity ports, seat controls and switch panels.

MC2's products enhance the aircraft user experience, enabling passengers to mirror their ground experience in the air as they stay connected in flight. The company offers hundreds of different niche parts used on a wide range of business aircraft, while serving both new aircraft production and the aftermarket.

Founded in 1996 by industry veteran Rick Hemphill, MC2 employs approximately 60 people at its Derby, KS engineering, production and testing facility. Rick Hemphill's son, Thomas Hemphill, will continue leading MC2 as its president, along with Mike Freel, MC2's General Manager. Thomas Hemphill and Mr. Freel will also remain company shareholders. Rick Hemphill will continue as a guiding consultant to MC2. HEICO stated that MC2 will operate from its Derby, KS location and that it does not expect material Team Member turnover to result from the acquisition. MC2 will report to HEICO's Radiant Power Group, which serves some of the same markets as MC2.

Laurans A. Mendelson, HEICO's Chairman and Chief Executive Officer, along with Victor H. Mendelson, HEICO's Co-President and Anish V. Patel, Radiant Power's President, together remarked, "Mid Continent Controls is a very special company known for excellent products, quality and customer service. Their approach to business and their entrepreneurial energy are exactly what we look for in acquisitions. We welcome Tom, Mike, Rick and the entire Mid Continent Controls team to the HEICO family."

Rick Hemphill, Tom Hemphill and Mike Freel jointly commented, "After decades carefully building this special business, we wanted Mid Continent Controls to be part of a great company which values our people, customers and way of doing business as much as we have. We feel we found that partner in HEICO and are excited about the potential we can accomplish together."

TM Capital LLC represented the sellers in the transaction. HEICO was not externally represented.

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 https://www.heico.com.

Contact Information:

Victor H. Mendelson
(305) 374-1745 ext. 7590

Carlos L. Macau, Jr.
(954) 987-4000 ext. 7570

SOURCE: HEICO Corporation