HEICO Corporation (NYSE: HEI) recently signed a contract to acquire Marway Power Solutions, Inc. The acquiree provides the design and construction of power distribution solutions for mission-critical systems used in defense, aerospace, communications, test and measurement, and industrial applications on land, sea and air.
Per the deal, HEI bought 92.5% of Marway for cash. HEICO indicated that the transaction would be accretive to its earnings within one year of the buyout.
How Will the Buyout Benefit HEICO?
Marway's acquisition is expected to strengthen HEICO's footprint in the aerospace and defense industry, particularly in power distribution solutions for mission-critical systems. It develops and produces power distribution solutions in both standard rackmount and customized enclosures. Marway provides a variety of products, including transformers, switchgear and customized solutions adapted to specific sectors like defense, which are consistent with HEI's value-creating approach.
The aforementioned factors will provide HEICO Corporation with an opportunity to expand its customer base, enhance its product offerings and increase its market share in power distribution solutions for mission-critical systems business area.
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