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HEICO (HEI) Buys Capewell's Divisions to Strengthen Operation
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HEICO Corporation (HEI - Free Report) recently announced that its Flight Support Group has acquired the Aerial Delivery and Descent Devices divisions of Capewell Aerial Systems ("Capewell") for cash. Capewell is a leading provider of proprietary aircraft cockpit emergency egress and aerial delivery products for various commercial aerospace and defense uses.
HEICO’s Gain From Capewell Acquisition
Capewell is a critical supplier to a wide-ranging customer base that includes leading OEMs, end-users and distributors. The company's highly engineered product portfolio encompasses emergency descent devices, personnel and cargo parachute products, heavy airdrop platforms and other highly engineered products.
Capewell also expanded its development and manufacturing to a full range of descent and delivery systems for military and commercial applications.
So, the company will add additional products and capabilities to HEICO's rapidly growing and highly-successful Specialty Products Group operations, which are dedicated to manufacturing high-reliability, mission-critical components for aerospace and defense customers. Due to Capewell’s wide range of product offerings and strong customer base, HEICO expects the acquisition to be accretive to its earnings within the year following closing.
HEICO Continues to Expand via Acquisition
HEICO’s disciplined acquisition strategy has also been driving its overall performance, further supplementing organic growth. In the 1990-2023 period, the company has accomplished 98 acquisitions to expand its operations.
In December 2023, Heico entered into an exclusive license agreement and acquired certain assets. This can support the 737NG/777 Cockpit Display and Legacy Displays product lines from Boeing (BA - Free Report) and Honeywell International (HON - Free Report) , respectively.
Capewell's products are manufactured to the highest reliability and product quality standards, as it is responsible for ensuring pilot and troop safety worldwide. So, this acquisition will further expand the product offering of HEICO, add new customers and enhance its revenue base.
Price Performance
HEICO has gained 24.6% in the last six months compared with its industry’s growth of 12.4%.
The Zacks Consensus Estimate for CurtissWright's 2024 and 2025 earnings has moved up by 1.9% and 1%, respectively, in the past 60 days. CW reported an average earnings surprise of 11.52% in each of the last four reported quarters.
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HEICO (HEI) Buys Capewell's Divisions to Strengthen Operation
HEICO Corporation (HEI - Free Report) recently announced that its Flight Support Group has acquired the Aerial Delivery and Descent Devices divisions of Capewell Aerial Systems ("Capewell") for cash. Capewell is a leading provider of proprietary aircraft cockpit emergency egress and aerial delivery products for various commercial aerospace and defense uses.
HEICO’s Gain From Capewell Acquisition
Capewell is a critical supplier to a wide-ranging customer base that includes leading OEMs, end-users and distributors. The company's highly engineered product portfolio encompasses emergency descent devices, personnel and cargo parachute products, heavy airdrop platforms and other highly engineered products.
Capewell also expanded its development and manufacturing to a full range of descent and delivery systems for military and commercial applications.
So, the company will add additional products and capabilities to HEICO's rapidly growing and highly-successful Specialty Products Group operations, which are dedicated to manufacturing high-reliability, mission-critical components for aerospace and defense customers. Due to Capewell’s wide range of product offerings and strong customer base, HEICO expects the acquisition to be accretive to its earnings within the year following closing.
HEICO Continues to Expand via Acquisition
HEICO’s disciplined acquisition strategy has also been driving its overall performance, further supplementing organic growth. In the 1990-2023 period, the company has accomplished 98 acquisitions to expand its operations.
In December 2023, Heico entered into an exclusive license agreement and acquired certain assets. This can support the 737NG/777 Cockpit Display and Legacy Displays product lines from Boeing (BA - Free Report) and Honeywell International (HON - Free Report) , respectively.
Capewell's products are manufactured to the highest reliability and product quality standards, as it is responsible for ensuring pilot and troop safety worldwide. So, this acquisition will further expand the product offering of HEICO, add new customers and enhance its revenue base.
Price Performance
HEICO has gained 24.6% in the last six months compared with its industry’s growth of 12.4%.
Image Source: Zacks Investment Research
Zacks Rank & A Stock to Consider
HEICO currently has a Zacks Rank #3 (Hold).
A better-ranked stock in the same space, carrying a Zacks Rank #2 (Buy), is CurtissWright (CW - Free Report) . You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for CurtissWright's 2024 and 2025 earnings has moved up by 1.9% and 1%, respectively, in the past 60 days. CW reported an average earnings surprise of 11.52% in each of the last four reported quarters.