HEICO Corp. [HEI] on Monday said its Electronic Technologies Group has agreed to acquire Robertson Fuel Systems, LLC for $255 million in cash, adding to its portfolio in the aerospace and defense markets.
The acquisition is subject to regulatory approval and is expected to close within two months. HEICO expects the acquisition to increase earnings within the year following closing of the deal.
Robertson Fuel Systems is a portfolio company of the private equity firm American Securities LLC. The company designs and produces crashworthy and ballistically self-sealing auxiliary fuel systems for military rotorcraft, including the AH-64 Apache, CH-47 Chinook, UH-60 Black Hawk, MH-60 Sea Hawk, and the V-22 Osprey.
HEICO said that Arizona-based Robertson has about 65 different fuel systems serving over 50 different platforms across military and civil aircraft and ground vehicles. The company has an installed base of over 11,000 fuel tank assemblies.
“Robertson is another excellent fit with HEICO,” Laurans Mendelson, HEICO’s chairman and CEO, and Victor Mendelson, HEICO’s co-president and CEO of the Electronics Technologies Group, said in a joint statement. “Their products are the internationally recognized standard for use on U.S. made helicopters and they make a mission critical, life-saving and high-reliability product required on thousands of aircraft and ground vehicles.”
Robertson has about 125 employees. The company’s management is staying onboard.
SunTrust Securities and Moelis & Company are the financial advisors for Robertson and American Securities on the deal and HEICO is being represented by UBS Investment Bank.