Work with the owner and manager of Ironwood Electronics
Egan, MN and Miami, FL / ACCESSWIRE / September 1, 2022 / HEICO Corporation (NYSE: HEI.A and HEI.A) today announced that its Electronic Technology Group has acquired approximately 80% of the equity capital of technology components company Ironwood Electronics, Inc. (“Ironwood”) cash paid at closing, plus additional cash consideration to be paid if Ironwood meets certain earnings targets. The remaining shares of Ironwood will continue to be owned by Ironwood’s CEO David Struyk and other key managers. Further financial information was not disclosed.
HEICO said it expects the acquisition to add to its earnings within a year of the acquisition.
Founded in 1986, Ironwood is a leading designer and manufacturer of high performance test sockets and adapters for semiconductor device engineering and production applications. Its products are used by semiconductor designers and manufacturers alike for critical verification and testing and other applications. Ironwood’s sockets and adapters are also used by technical and electronic designers and manufacturers for development and production purposes in their systems.
In integrated circuit (“IC”) packaging, Ironwood’s products cover QFN, BGA, SOIC, QFP, LGA, WLCSP and other surface mount technology (“SMT”) packages. Ironwood’s family of gigahertz (“GHz”) sockets feature 6 different contact technologies, support bandwidths up to 110 GHz, up to 10,000 pins spaced as small as 0.2 mm, and up to 500,000 insertions in a minimal footprint .
Ironwood, headquartered in Egan, Minnesota, employs approximately 75 people in the design, manufacture and sale of its products. David Struyk will continue to serve as Ironwood’s chief executive officer and major shareholder, and the rest of Ironwood’s management will continue in their roles until the closing of the transaction. HEICO also said that the acquisition is not expected to result in any significant turnover of team members and that Ironwood is expected to continue to operate from its current location under its existing name.
Ironwood’s major shareholder and CEO, David Struyk, said: “We want to partner with a successful and growing company that is committed to serving our employees and customers. HEICO is a fantastic home that allows us to work through The acquisition continues to grow our business organically, while maintaining our entrepreneurial operating style and continuing to deliver best-in-class products to our customers.”
Laurans A. Mendelson, HEICO Chairman and CEO, and Victor H. Mendelson, HEICO Co-President and Electronic Technology Group CEO, commented, “Dave Struyk and his team at Ironwood have created a unique niche business” that is in line with HEICO A perfect match because, among other things, we share the same commitment to quality, technology, growth, people and customers. We welcome everyone at Ironwood to the HEICO family and we look forward to more success together. “
HEICO Corporation provides the design, manufacture, service and distribution of products and services for certain segments of the aerospace, defense, space, medical, telecommunications and electronics industries primarily through its Flight Support Group in Hollywood, Florida and its Miami, Florida Electronic Technology Group. In addition to medical, telecommunications and electronic equipment manufacturers, HEICO’s customers include most of the world’s airlines and overhaul shops, as well as numerous defense and aerospace contractors and military agencies around the world. For more information on HEICO, please visit our website www.heico.com.
Certain statements in this press release constitute forward-looking statements that are subject to risks, uncertainties and contingencies. HEICO’s actual results may differ materially from those expressed or implied in these forward-looking statements as a result of the following factors: the severity, scale and duration of the pandemic; HEICO’s liquidity and amount and timing of cash generation; reductions in commercial air travel and its consequences, airline fleet changes or airline purchasing decisions, which may result in lower demand for our goods and services; product specification costs and requirements, which may result in increased costs for us to complete contracts; Government and regulatory requirements, export policies and restrictions, reductions in defense, space or homeland security spending by U.S. and/or foreign customers, or competition from existing and new competitors, which may reduce our sales; The ability to introduce new products and services, which may reduce our sales or sales growth; product development or manufacturing difficulties, which may increase our product development and manufacturing costs and delay sales; the ability to realize operational synergies in the negative impacts on costs and revenues; and defense spending or budget cuts, which could reduce our defense-related revenues. Parties receiving this material are encouraged to review all of HEICO’s filings with the Securities and Exchange Commission, including but not limited to those on Form 10-K, Form 10-Q, and Form 8-K. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by applicable law.
Victor H. Mendelsohn (305) 374-1745 ext. 7590
Carlos L. Macau, Jr. (954) 987-4000 ext. 7570