Hollywood-based Heico Corp., a maker of parts and electronics for planes and other aircraft, has made a major acquisition overseas.
Heico bought 80 percent of Aeroworks International Holdings B.V., a Netherlands-based parts maker that has factory operations in Thailand and Laos. Aeroworks’ Thai operations employ about 600 people making metal and composite parts used mainly in airplane interiors, said Eric Mendelson, who leads Heico’s flight support group.
The purchase represents the largest international expansion yet for Heico, which already employed about 3,200 people in the United States and more than 350 abroad. Adding factory operations in Thailand will help the company offer its customers an option for lower-cost manufacturing, Mendelson said.
“This gives us flexibility, if the lead times and technical standards match with the operations in Thailand,” Mendelson said in an interview Tuesday.
Terms of the deal were not disclosed, but Heico said the purchase would add to its earnings within the first year of closing. Heico has been buying up companies with annual revenues in the $10 million to $70 million range.
Aeroworks, founded in 2000, mainly makes parts on contract for original equipment manufacturers. Its factories also could be used to produce Heico-brand goods that don’t compete with those contracted items made for others, Mendelson said.
Including Aeroworks, HEICO subsidiaries now operate production or engineering facilities in eight countries in North America, Europe and Asia.
Heico reported $1.1 billion in revenue and $121.2 million in net income for the year ended Oct. 31.
dhemlock@sunsentinel.com, 305-810-5009
