MIRAMAR, FL and HOLLYWOOD, FL / ACCESSWIRE / January 16, 2024 / HEICO Corporation (NYSE:HEI.A) and (NYSE:HEI) today announced its Sunshine Avionics subsidiary entered into an exclusive license and acquired key assets from Honeywell International ("Honeywell") that will provide the capability to support the Boeing 737NG/777 Cockpit Displays and Legacy Displays product lines. The transaction was structured as an exclusive perpetual license and asset purchase. Sunshine Avionics is part of HEICO's Flight Support Group. Transaction terms and financial details were not disclosed.
HEICO stated that it expects the exclusive license and asset acquisition to be accretive to its earnings in the year following closing.
Honeywell has been one of the commercial aviation industry's leading cockpit display providers. Honeywell's latest Display Unit ("DU") Phase 3 upgrade for the Boeing 737NG/777 is equipped with the latest glass and LED backlight technology to provide a clear picture of critical airplane systems, allowing pilots to safely navigate their passengers to millions of destinations a year. The DU Phase 3 upgrade addresses obsolescence and avoids failures on older discontinued Phase 1 or 2 displays, while also providing lighter weight, higher reliability, and lower operating costs.
This exclusive transaction will provide Sunshine Avionics with the capability to produce, sell, and repair Boeing 737NG/777 Cockpit Displays as well as other Legacy Displays for Boeing 717, ATR, and select business and general aviation aircraft. Following a transition period, Sunshine Avionics, from its recently expanded Miramar, FL facility, will be responsible for the activities formerly performed by Honeywell.
Miramar-based Sunshine Avionics is a leading provider of the highest quality MRO services for advanced avionic component repairs. Sunshine Avionics' significant investments in automatic test equipment (ATE), combined with a talented team of hands-on engineers, have resulted in efficient, high-quality repairs with significantly reduced turn times. Sunshine Avionics leads the industry by providing the most innovative cost-saving solutions available and a commitment to outstanding customer service and reliability.
Sunshine Avionics was founded in 2004 by Leon Gonzalez and Pablo Dominguez. Over nearly 20 years, they developed a proprietary process that yields innovative and novel repair solutions. Sunshine Avionics' initial team of two has grown to accommodate more than 80 Team Members, providing support for over 10,000 Line Replaceable Unit (LRU) repairs annually.
Leon and Pablo jointly commented, "This is a significant advancement for Sunshine Avionics, as we grow our capabilities and strengthen our position to better service our customers. This exclusive transaction also recognizes Sunshine Avionics' talented Team Members who share a passion for avionics and customer service excellence."
Laurans A. Mendelson, HEICO's Chairman and Chief Executive Officer, along with Eric A. Mendelson, HEICO's Co-President and CEO of its Flight Support Group commented, "We are proud to support Leon, Pablo, and the Sunshine Avionics team in their acquisition of the exclusive, perpetual license for this phenomenal product line. This transaction is a win-win for HEICO, Honeywell, and our customers, and we look forward to growing our strong relationship with Honeywell even further. Additionally, we are proud to insource high-skill manufacturing jobs to the United States, and in particular, to South Florida."
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 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: the severity, magnitude and duration of the COVID-19 Pandemic; HEICO's liquidity and the amount and timing of cash generation; lower commercial air travel, airline fleet changes or airline purchasing decisions, 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; our ability to introduce new products and services at profitable pricing levels, which could reduce our sales or sales growth; product development or manufacturing difficulties, which could increase our product development and manufacturing costs and delay sales; our ability to make acquisitions and achieve operating synergies from acquired businesses; customer credit risk; interest, foreign currency exchange and income tax rates; economic conditions, including the effects of inflation, within and outside of the aviation, defense, space, medical, telecommunications and electronics industries, which could negatively impact our costs and revenues; and defense spending or budget cuts, which could reduce our defense-related revenue. 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.
Contact: Eric Mendelson (954) 744-7555
Carlos L. Macau, Jr. (954) 744-7562
SOURCE: HEICO Corporation
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