HEICO to Acquire Wencor

HEICO announced that it has entered into an agreement to acquire Wencor for $1.9 billion in cash and $150 million in HEICO Class A Common Stock.

The transaction is purported to be HEICO’s largest purchase, as well as revenues and income acquired. Reports say Wencor will become part of HEICO’s Flight Support Group.

Wencor was founded in 1955 and is a large commercial and military aircraft maker of FAA-approved aircraft replacement parts, distributor of high-use commercial and military aftermarket parts and a provider of aircraft and engine accessory component repair and overhaul services.

Wencor is based in Peachtree City, Georgia and provides its parts and services internationally, employing approximately 1,000 people in 19 facilities around the United States. HEICO currently employs approximately 9,000 Team Members at over 100 facilities worldwide. Wencor’s customers include airlines worldwide, aircraft maintenance repair and overhaul companies, military agencies and defense contractors.

Wencor’s parts and repairs are found in hydraulic, pneumatic, electronic and electro-mechanical, cockpit and galley systems throughout numerous aircraft models.

HEICO said it anticipates that Wencor will generate approximately $724 million and $153 million in revenues and EBITDA in calendar year 2023. HEICO stated that its Flight Support Group “will achieve meaningful synergies from the acquisition.”

“Our Flight Support Group has for decades provided high-quality and reliable cost-saving products and services to the commercial aircraft and defense aftermarkets,” said Laurans A. Mendelson, HEICO’s chairman and CEO, together with Eric A. Mendelson, HEICO’s co-president and CEO of its Flight Support Group. “The Wencor acquisition materially expands HEICO’s aftermarket product offerings, enabling the combined company to offer even greater savings and capabilities to its customers, while expanding our new products and services development capacity. Wencor is a perfect and highly complementary fit with HEICO. Importantly, we look forward to welcoming Wencor’s Team Members to the HEICO family and to working with Wencor’s talented leadership team led by Shawn Trogdon, who will continue to lead the business.”

Shawn Trogdon, Wencor’s CEO, added, “I am excited about the opportunity to combine HEICO and Wencor’s impressive teams who share the same culture and commitment to our customers, suppliers and employees. The unmatched combination will further accelerate growth, innovation, and development of highly reliable cost-saving solutions for our customers. I am proud of our team’s achievements to date and look forward to continuing our journey of growth with HEICO. I want to thank the Warburg Pincus team for their support and partnership that has helped enable our success.”

The parties say they anticipate transaction to be closed by the end of calendar 2023.