Defense and aerospace components maker Heico (NYSE: HEI) has agreed to acquire Wencor Group from the latter’s management and private equity firm Warburg Pincus in a cash-and-stock deal valued at $2.05 billion.
Heico said Monday it will pay $1.9 billion in cash and $150 million in Class A common stock for the Peachtree City, Georgia-headquartered distributor of aftermarket products and services.
Wencor manufactures commercial and military aircraft parts designed to comply with Federal Aviation Administration standards and offers maintenance, repair and overhaul support to customers.
All parties expect to close the transaction by the end of the year.
Heico estimates Wencor will generate $724 million in adjusted proforma revenue and $153 million in earnings before interest, taxes, depreciation and amortization in 2023.
Morgan Stanley acted as the lead financial adviser to Heico in the transaction. The latter also sought legal advice from Lazard; Moelis & Company; Paul, Weiss, Rifkind, Wharton & Garrison; and Akerman.
Citi served as Wencor’s lead adviser and Jefferies acted as the co-adviser. William Blair and Alderman & Company were the financial advisers while Cleary Gottlieb Steen and Hamilton conducted legal counseling.
