Electronic component and product developer and manufacturer HEICO Corp. [HEI] on Aug. 18 announced its largest acquisition, a $336.5 million cash deal for AeroAntenna Technology Inc. (AAT) that would give the company a new product line.
The cash price includes a $20 million earn out provision if the company meets its earnings targets. The deal price also includes $37 million to compensate AAT’s sellers for certain tax elections that will result in a net cash tax benefit to HEICO worth at least half that amount. The company expects the acquisition to be accretive to earnings within the first year of closing.
Miami-based HEICO, which basically operates as a holding company, said that California-based AAT has 140 employees. AAT’s annual sales were not disclosed but a HEICO spokesman told sister publication Defense Daily that more than half of the antenna developer and manufacturer’s revenue comes from defense and the rest split between commercial aviation and other commercial industries.
AAT’s antenna products are sued in precision guided munitions, ground and vehicular, marine, aviation, wireless and satellite applications. HEICO, which reported $1.4 billion in sales in its fiscal year 2016, develops and produces a wide range of parts, equipment and electronics for commercial and military aircraft, satellites, defense equipment, broadcast, telecommunications and other purposes.
AAT’s senior management will remain with the company. AAT’s financial advisor on the deal was Philpott Ball & Werner. The acquisition is subject to anti-trust review.