HEI - HEICO's Flight Support Group to acquire 74% stake in Pioneer Industries

HEICO's (HEI -0.2%) Flight Support Group has agreed to acquire 74% of Farmingdale, NY-based specialty defense spares distributor, Pioneer Industries, in an all-cash deal. The agreement includes potential additional cash consideration to be paid if certain post-closing earnings levels are attained. Additional financial details were not disclosed. The acquisition, subject to antitrust regulatory approval, is expected to be accretive to HEI's earnings within the year following closing. Pioneer Industries is a specialty distributor of spares for military aviation, marine, and ground platforms. Its owners, Robert and David Yormack, will retain 26% of the equity and continue in their current roles with the company. HEICO does not expect any staff turnover to result from the acquisition. The acquisition brings new products and capabilities to HEICO's Defense Sustainment and Distribution operations.

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HEICO's Flight Support Group to acquire 74% stake in Pioneer Industries