US defence and aerospace components manufacturer Heico Corporation has acquired a controlling stake in Aerospace & Commercial Technologies (ACT).
The company announced this week that it has finalised the acquisition of an 80.1% stake in ACT, leaving the remainder in its control.
Neither party involved in this deal has yet made any announcement on the amount of money involved.
ACT is a major manufacturer of spare parts and other components for the F-16 fighter jet currently produced by Lockheed Martin.
The Texas-based company was established in 2002 as an OEM supplier for the more than 3,000 F-16 jets in service around the world.
According to a press statement, ACT’s entire management team will remain with the company in their existing positions and there is not expected to be any employee turnover to result from the acquisition.
ACT will work in coordination with Heico’s Blue Aerospace subsidiary, which is also a Lockheed Martin F-16 licensee, to support the F-16 community worldwide. Both companies will operate as separate entities.
Heico is hoping that this new acquisition will solidify its position in the defence components market.
“ACT is another perfect fit for Heico. This acquisition expands our reach into defence aftermarket support more actively and extends Heico’s business base in this important sector,” said Laurans A. Mendelson, HEICO’s chairman and CEO.
“We expect synergies from ACT’s depth of engineering, manufacturing and repair capabilities and Blue’s extensive position in international markets.”
ACT is also happy with the new deal, and hopes that it will enable them to continue to expand the size of their operation.
“ACT is excited to become part of the Heico family. We believe that Heico will help us to continue to grow and yet let us keep the company culture we have developed. Together we will satisfy the customers’ needs with superior products and services,” said Dave Smith, president of ACT
Markets have responded slightly negatively to the news of this acquisition, with Heico’s share price dropping by around 5% since the announcement of the deal.