Heico to buy aircraft aftermarket company Wencor in $2.1 billion deal

Heico Corp.
HEI,
+7.86%
announced Monday an agreement to buy commercial and military aircraft aftermarket company Wencor Group in a deal valued at $2.05 billion from affiliates of investor Warburg Pincus and Wencor’s management. Under terms of the deal, Heico will pay $1.9 billion in cash and $150 million in Heico common stock. Heico which makes products for the aviation, space, defense, medical, telecommunications and electronics industries, said it believes the acquisition will add to its earnings within the year following closing, which is expected to occur by the end of 2023. Heico’s stock was still inactive in the premarket. “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,” said Heico Chief Executive Officer Laurans Mendelson. Heico shares have gained 8.0% year to date while the S&P 500
SPX,
+0.16%
has tacked on 7.4%.