EXHIBIT 99.1
FOR IMMEDIATE RELEASE
AUGUST 14, 2000
(954) 987-4000 or (305) 374-1745
Thomas S. Irwin ext. 7560
Victor H. Mendelson ext. 7590
HEICO CORPORATION AGREES TO SELL TRILECTRON SUBSIDIARY
Miami, FL and Palmetto, FL-HEICO Corporation (NYSE: HEI and HEI.A) today
announced that it has entered into a definitive agreement to sell its Trilectron
Industries, Inc. subsidiary to a subsidiary of Illinois Tool Works Inc., a $9.3
billion (sales) diversified manufacturing company headquartered in Glenview, IL,
for $52,500,000 in cash payable at closing plus assumption of approximately $4.3
million of long-term debt. The transaction, which is subject to approval under
the Hart-Scott-Rodino Antitrust Improvements Act and customary closing
conditions, is expected to be completed within 90 days.
HEICO, which acquired Palmetto, FL-based Trilectron in 1996, stated that it
anticipates that it will report a net gain of $9 to $11 million after taxes in
the fourth quarter of fiscal 2000 from the transaction. Laurans A. Mendelson,
HEICO's Chairman, President and Chief Executive Officer noted, "HEICO's
management has again demonstrated its ability to apply its highly successful
management techniques to significantly grow an acquired business and then
redeploy the investment, realizing a substantial benefit to HEICO shareholders."
Mr. Mendelson also stated, "We believe Trilectron's sale will sharpen HEICO's
aircraft aftermarket focus and will allow us to emphasize our traditional higher
profit margin activities and to allocate our financial resources to these
areas."
Following the transaction, HEICO stated it plans to change the name of its
Electronics and Ground Support Group to the Electronic Technologies Group and
that it expects to relocate that group's Radiant Power Corp. subsidiary to a new
facility in nearby Sarasota, FL. Radiant, which was acquired as a product line
in 1999, was located at Trilectron's facilities in Palmetto, FL. Radiant expects
that it will continue to manufacture, service and sell its current entire
product line and that it will not experience significant employee turnover as a
result of the move.
-more-
<PAGE>
Finally, Mr. Mendelson stated, "While we continue to foresee weakness in the
next several months in the aviation aftermarket industry, we remain confident
that our intermediate and long term growth prospects are strong in that market
segment, and we believe that the remaining businesses within our Electronic
Technologies Group present strong growth potential. In addition, HEICO will
continue to pursue strategic acquisitions and, with the combination of the
proceeds from Trilectron's sale and the Company's increased capital base and
borrowing capabilities, we are confident that we have the financial ability to
continue making these acquisitions."
Investment banking firm ING Barings acted as HEICO's financial advisor, and the
law firm of Greenberg Traurig acted as HEICO's legal advisor in connection with
the transaction.
HEICO Corporation is engaged in certain niche segments of the aerospace,
aviation and defense industries through its Hollywood, FL-based HEICO Aerospace
Holdings Corp. subsidiary and its Miami, FL-based HEICO Aviation Products Corp.
subsidiary. HEICO's customers include a majority of the world's airlines and
airmotives as well as numerous defense contractors and military agencies
worldwide, including the United States Air Force, Navy and NASA. HEICO has
developed and successfully employs programs which enhance its manufacturing
operations and has followed highly focused marketing and product development
programs to greatly expand product offerings and marketing reach following
acquisitions. For more information concerning HEICO, please see our World Wide
Web site at: http://www.heico.com/
Certain matters discussed in this press release include forward-looking
statements which involve risks and uncertainties. HEICO's actual experience may
differ materially from that discussed as a result of factors, including, but not
limited to, lower commercial air travel, product specification costs and
requirements, governmental and regulatory, demands, competition on military
programs, product pricing levels, HEICO's ability to make acquisitions and
achieve operating synergies from such acquisitions, interest rates and economic
conditions within and outside of the aerospace, aviation and defense industries.
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 Forms 10-K, Forms 10-Q and Forms 8-K.
