Hollywood, Fla.-based HEICO (NYSE:HEI) is adding heft to its Flight Support Group.
On Monday, the niche aerospace and defense company announced that it has entered into a definitive agreement to buy Reinhold Industries from private equity firm The Jordan Company in a deal slated to close within the next 45 days.
A maker of advanced components and composite assemblies for commercial aviation, defense, and space companies, Reinhold is 85 years old and counts among its customers everyone from makers of commercial airline seats to Raytheon (NYSE:RTN), which uses the company's components in the manufacture of Patriot-2 and Standard Missiles. In announcing the deal, HEICO called Reinhold's "significant presence on key missile defense programs ... very attractive."
HEICO did not released specifics on Reinhold's revenues or profits but did say that it expects the acquisition to become accretive to earnings within 12 months of closing.
Investors seemed to approve of the deal, bidding HEICO shares up 0.4% to close at $43.95 on a down day for the Dow.