HEICO Corporation Acquires Sierra Microwave Technology

Hollywood, FL and Georgetown, TX -- HEICO Corporation today announced that its Electronic Technologies Group has completed the acquisition of 80% of the business of Sierra Microwave Technology, Inc. from Sierra's management. Consideration was principally cash and some shares of HEICO Class A Common Stock.

Sierra is a leading designer and manufacturer of certain niche microwave components used in satellites and military products. Sierra's products include, among others, isolators, circulators, bias tees, equalizers, pin-diode switches, filters, adapters, latching ferrite switches, integrated assemblies and multiplexers.

HEICO stated that it expects the transaction to be accretive to its earnings per share.

Under the transaction, HEICO formed a new subsidiary, Sierra Microwave Technology, LLC, which acquired substantially all of the assets and certain limited liabilities of Sierra. The new subsidiary will be owned 80% by HEICO, and 20% by Sierra's management; HEICO has the right to purchase the minority interests in approximately ten years, or sooner under certain conditions, and the minority holders have the right to cause HEICO to purchase their interests commencing in approximately 5 years, or sooner under certain conditions. Additional terms of the transaction and Sierra's financial details were not disclosed.

Based in Georgetown, TX, Sierra employs approximately 60 people there, and HEICO stated that it does not expect any material employee turnover or changes in employment levels as a result of the transaction. Led by Sierra's president and co-founder, Troy Rodriguez, Sierra's entire senior management team will remain with the business under long-term employment agreements.

Laurans A. Mendelson, HEICO's chairman, president, and CEO, stated, "Sierra is an excellent transaction for HEICO, as it continues our product and customer diversification strategy in our Electronic Technologies Group by adding a highly regarded and well managed business which produces a specialty, niche product line. We are most impressed by Sierra's talented employees and welcome all of them to the HEICO family."

Mr. Rodriguez commented, "We feel HEICO will be an excellent parent to help our business grow, as they are committed to the same management style and focus on niche products as we have. We are very pleased to join the HEICO team."

Source: HEICO