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HOLLYWOOD, Fla. and SANTA FE SPRINGS, Calif., May 6, 2013 (GLOBE NEWSWIRE) -- HEICO Corporation (NYSE:HEI.A) (NYSE:HEI) today announced that it has entered into a definitive agreement to acquire Reinhold Industries, Inc. ("Reinhold") from certain affiliates of The Jordan Company, L.P., a New York-based investment firm, and Reinhold management. Reinhold will be part of HEICO's Flight Support Group. Financial details were not disclosed, but HEICO stated that it expects the acquisition to be accretive to its earnings per share within the first twelve months following closing.
The acquisition is subject to customary closing conditions, including clearance under the Hart-Scott-Rodino Anti-Trust Improvements Act. The Company stated that it expects the acquisition to close within the next 45 days.
Santa Fe Springs, CA-based Reinhold is believed to be the world's leading manufacturer of advanced niche components and complex composite assemblies for commercial aviation, defense and space applications. A majority of Reinhold's revenue is derived from the design, manufacture and sale of commercial aircraft components, such as its unique composite seatbacks and related components used in a large number of airliner seats. Reinhold also generates a substantial portion of its sales from defense activities, principally those related to currently-fielded missile defense systems, such as the Patriot-2, Standard Missile and GMD programs.
Tracing its roots to its start by the Reinhold brothers in 1928, Reinhold now employs approximately 200 people at its facilities in Southern California, where the company conducts all of its operations. HEICO stated that Reinhold's management will remain with the company in their current positions. HEICO also stated that it does not expect any employee turnover as a result of the acquisition.
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, jointly commented, "Reinhold is an excellent acquisition for HEICO, as it offers a growing product line in growing markets. Reinhold's outstanding quality record, reputation and exceptional management were also critical to our decision to buy the business."