HON - Heico's stock jumps to record high on plan to buy Wencor for $2B

2023-05-15 10:22:27 ET

Heico’s ( NYSE: HEI ) stock on Monday surged to an all-time high after saying it had agreed to acquire for $2.05 billion in cash and stock aftermarket defense parts supplier Wencor Group from management and private-equity firm Warburg Pincus.

Heico ( HEI ) rose as much 8.5% to a record $180.11 a share by 10:18 a.m. ET.

The purchase price consists of $1.9 billion in cash and $150 million in stock for Wencor, which is Heico’s ( HEI ) biggest acquisition. Heico ( HEI ) expects to close the transaction by the end of the calendar year.

Wencor employs about 1,000 workers among 19 facilities in the United States, and estimated its 2023 revenue will total $724 million.

Heico’s revenue totaled $2.2 billion for the fiscal year ended Oct. 31. The company has about 9,000 workers among more than 100 facilities worldwide.

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