HEICO Corporation Acquires Important Avionics Company

Rhea-AI Summary

HEICO Corporation (NYSE:HEI) has announced the acquisition of Gables Engineering, a leading avionics controls manufacturer, through its Electronic Technologies Group in a cash transaction. Founded in 1946, Gables Engineering specializes in designing and manufacturing advanced navigation, audio, surveillance, and communication panels for aircraft, including recent work on touchscreen cockpit displays for the Boeing 737 MAX.

Operating from a 108,000 square foot facility in Coral Gables, FL, the company employs over 200 professionals and serves major aircraft OEMs, Tier 1 avionics providers, and airlines. HEICO expects the acquisition to be accretive to earnings within one year. The acquisition strengthens HEICO's position in American manufacturing and engineering excellence, with both companies being headquartered in close proximity in Florida.

Positive

• Acquisition expected to be accretive to earnings within first year
• Adds 200+ skilled professionals including engineers and technicians
• Strategic expansion into advanced avionics controls and cockpit displays
• Geographic synergy with headquarters and other HEICO facilities
• Brings established relationships with major aircraft OEMs and airlines

Negative

• Financial terms and transaction details not disclosed
• Integration risks with existing operations
• Potential impact on cash reserves from cash transaction

Insights

Aerospace Industry Analyst

HEICO's acquisition of Gables Engineering strengthens its avionics portfolio with accretive earnings potential while expanding manufacturing capabilities.

HEICO's cash acquisition of Gables Engineering represents a strategic expansion of its Electronic Technologies Group into advanced avionics controls. Gables Engineering brings 80 years of industry expertise, a team of 200+ professionals, and an impressive 108,000 square foot manufacturing facility in Coral Gables, Florida.

This transaction is particularly valuable as Gables Engineering supplies critical components to major aircraft OEMs, Tier 1 avionics providers, and airlines worldwide. Their product portfolio includes navigation, audio, surveillance, and communication panels—essential components for modern aircraft operations. The company's recent work developing touchscreen cockpit displays for the Boeing 737 MAX demonstrates their technical capabilities in next-generation avionics.

The proximity of Gables Engineering to HEICO's headquarters creates operational synergies and reinforces HEICO's commitment to American manufacturing excellence. From an integration perspective, this acquisition aligns perfectly with HEICO's long-standing strategy of acquiring specialized aviation component manufacturers that enhance its product offerings while maintaining robust margins.

HEICO explicitly states the acquisition will be accretive to earnings within a year, indicating confidence in rapid integration and value creation. While financial details weren't disclosed, HEICO's track record suggests disciplined acquisition practices that typically yield strong returns. This transaction further strengthens HEICO's already formidable position in niche aviation components and should enhance its capabilities to serve both OEM and aftermarket aviation segments.

Financial Analyst

The acquisition of Gables Engineering significantly enhances HEICO's product portfolio and vertical integration capabilities. Specializing in aviation control systems for both OEMs and aftermarket, Gables Engineering provides HEICO with deeper penetration into critical avionics systems.

Three key financial aspects stand out: First, management explicitly projects the acquisition will be earnings accretive within one year—a positive indicator of thoughtful capital allocation and reasonable acquisition pricing. Second, HEICO made this acquisition with cash, suggesting strong liquidity and efficient balance sheet management. Third, the vertical integration of Gables' engineering capabilities (with 200+ skilled employees) provides HEICO immediate technical expertise without the lengthy process of internal development.

Gables Engineering's longstanding relationships with aircraft OEMs, including supplying touchscreen displays for the Boeing 737 MAX, provides HEICO additional revenue stability and broader market access. The acquisition furthers HEICO's dual-market strategy of serving both original equipment manufacturers and aftermarket services, which historically has provided resilience during industry downturns.

While specific financial terms remain undisclosed, HEICO's disciplined approach to acquisitions suggests this transaction likely falls within their historical valuation parameters. The geographic proximity to HEICO headquarters should facilitate efficient integration and management oversight, potentially accelerating the timeline to achieve anticipated synergies and cost efficiencies.

Gables Engineering acquired by HEICO's Electronic Technologies Group

CORAL GABLES, FL and MIAMI, FL / ACCESS Newswire / July 24, 2025 / HEICO Corporation (NYSE:HEI.A and HEI) today announced that its Electronic Technologies Group has acquired Gables Engineering, Inc. ("Gables Engineering") for cash at closing. Further transaction terms and financial details were not disclosed.

HEICO stated that it expects the acquisition to be accretive to its earnings within a year following the purchase.

Founded in 1946, Gables Engineering is a leading designer and manufacturer of advanced avionics controls, including navigation, audio, surveillance, and communication panels for a wide range of aircraft. Its integrated operations support both OEM production and aftermarket services. Gables Engineering is a trusted supplier to global aircraft OEMs, Tier 1 avionics providers and major airlines.

Headquartered in a state-of-the-art 108,000 square foot facility in Coral Gables, FL, the company performs key engineering and manufacturing in-house with its talented team of more than 200 professionals, including engineers and technicians. Since its founding nearly 80 years ago by Victor P. Clarke, Gables Engineering has been known as a pioneering aviation innovator developing advanced solutions for leading aerospace platforms, most recently including items like the modern touchscreen cockpit displays for the Boeing 737 MAX. Gables Engineering's products are an industry standard and have been line fit equipment on generations of airliners and business aircraft for many decades.

Laurans A. Mendelson, HEICO's Executive Chairman, along with Eric A. Mendelson and Victor H. Mendelson, the Company's Co-Chief Executive Officers, jointly commented, "Gables Engineering is a natural fit for HEICO's culture of performance, innovation, and long-term growth. Located close to HEICO's headquarters and numerous other HEICO facilities, this acquisition reinforces our commitment to investing in high-quality, American manufacturing and engineering excellence."

Andrew M. Jackson, representing Gables Engineering's senior leadership, added, "We are excited to join the HEICO family. This partnership will support and grow Gables Engineering's research and development investments in flight deck technologies. We believe that this partnership will enhance value for our customers worldwide, and we look forward to seeing how partnering with other members of the HEICO family will help us continue to meet our customers' needs and build on Gables Engineering's established reputation for excellence in the avionics field."

HEICO Corporation is engaged primarily in the design, production, servicing and distribution of products and services to certain niche segments of the aviation, defense, space, medical, telecommunications and electronics industries through its Hollywood, Florida-based Flight Support Group and its Miami, Florida-based Electronic Technologies Group. HEICO's customers include a majority of the world's airlines and overhaul shops, as well as numerous defense and space contractors and military agencies worldwide, in addition to medical, telecommunications and electronics equipment manufacturers. For more information about HEICO, please visit our website at www.heico.com.

Certain statements in this press release constitute forward-looking statements, which are subject to risks, uncertainties and contingencies. HEICO's actual results may differ materially from those expressed in or implied by those forward-looking statements. Factors that could cause such differences include, among others: the severity, magnitude and duration of public health threats, such as the COVID-19 Pandemic; our liquidity and the amount and timing of cash generation; lower commercial air travel, airline fleet changes or airline purchasing decisions, which could cause lower demand for our goods and services; product specification costs and requirements, which could cause an increase to our costs to complete contracts; governmental and regulatory demands, 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 could reduce our sales; our ability to introduce new products and services at profitable pricing levels, which could reduce our sales or sales growth; product development or manufacturing difficulties, which could increase our product development and manufacturing costs and delay sales; cyber security events or other disruptions of our information technology systems could adversely affect our business; our ability to make acquisitions, including obtaining any applicable domestic and/or foreign governmental approvals, and achieve operating synergies from acquired businesses; customer credit risk; interest, foreign currency exchange and income tax rates; economic conditions, including the effects of inflation, within and outside of the aviation, defense, space, medical, telecommunications and electronics industries, which could negatively impact our costs and revenues; and defense spending or budget cuts, which could reduce our defense-related revenue. Parties receiving this material are encouraged to review all of HEICO's filings with the Securities and Exchange Commission, including, but not limited to filings 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 to the extent required by applicable law.

Contact:
Victor H. Mendelson (305) 374-1745

Carlos L. Macau (954) 744-7562

SOURCE: HEICO Corporation

View the original press release on ACCESS Newswire

FAQ

What company did HEICO (NYSE:HEI) acquire in July 2025?

HEICO acquired Gables Engineering, a leading designer and manufacturer of advanced avionics controls, through its Electronic Technologies Group in a cash transaction.

How many employees does Gables Engineering have and where is it located?

Gables Engineering employs over 200 professionals, including engineers and technicians, and operates from a 108,000 square foot facility in Coral Gables, FL.

When will the Gables Engineering acquisition be accretive to HEICO's earnings?

HEICO expects the acquisition to be accretive to its earnings within one year following the purchase.

What products does Gables Engineering manufacture for the aviation industry?

Gables Engineering manufactures advanced avionics controls, including navigation, audio, surveillance, and communication panels for aircraft, notably including touchscreen cockpit displays for the Boeing 737 MAX.

How will the acquisition benefit HEICO's business operations?

The acquisition strengthens HEICO's position in American manufacturing, adds advanced avionics capabilities, and provides strategic geographic synergy with HEICO's existing facilities in Florida.