HEICO Corp. [HEI.A] yesterday said it has agreed to acquire Reinhold Industries, a designer and manufacturer of niche components and composite assemblies for commercial aviation, defense and space applications, expanding its product line.
Terms of the deal, which is expected to close in June following regulatory reviews, were not disclosed. HEICO, which makes and repairs aircraft parts and electronics, said the deal is expected to be accretive to earnings within the first year of closing.
Reinhold, which is currently owned by the investment firm The Jordan Company, L.P., and its management, is based in California. Most of the company’s sales are generated by commercial aircraft components, such as composite seatbacks and related components used in a large number of airliner seats.
The company also generates a substantial portion of its sales through currently fielded missile defense systems such as the Patriot 2, Standard Missile, and Ground-based Mid-course Defense system.
“Reinhold is an excellent acquisition for HEICO, as it offers a growing product line in growing markets,” Laurans Mendelson, HEICO’s chairman and CEO, said in a statement. “Reinhold’s significant presence on key missile defense programs is very attractive to HEICO, especially given that a sizable portion is for systems being purchased by foreign government allies of the United States who need to create or strengthen their missile defense protections.”
Lazard served as Reinhold’s financial adviser on the deal.