HEICO Acquiring Gables Engineering to Bolster Avionics Expertise
HEICO Corporation Acquires Gables Engineering, Boosting American Avionics Manufacturing
In a significant move bolstering its presence in the avionics industry, HEICO Corporation has announced the acquisition of Gables Engineering. The deal, an all-cash transaction, brings together two industry leaders, with HEICO's Electronic Technologies Group acquiring the Florida-based firm.
Gables Engineering, located near HEICO's headquarters and numerous other facilities, is a leading designer and manufacturer of advanced avionics controls. With over 200 skilled professionals, the company specializes in navigation, audio, surveillance, and communication panels for major aircraft Original Equipment Manufacturers (OEMs) and airlines worldwide. Gables Engineering is renowned for its innovations, such as touchscreen cockpit displays used on Boeing 737 MAX aircraft.
The partnership is expected to enhance value for Gables Engineering's customers worldwide, while also boosting HEICO's earnings within a year. The acquisition reinforces HEICO's commitment to American manufacturing excellence, integrating a well-established Florida-based firm with extensive expertise and a large engineering workforce.
The strategic growth aligns with the projected growth of the global avionics market, which is expected to reach $179.44 billion by 2032. The acquisition expands high-margin avionics production, expected to boost HEICO's EBITDA to $1.2 billion in 2026.
Operational synergies and cost efficiency are also expected to result from the acquisition, as Gables' proximity to HEICO's Florida headquarters enables reduced integration costs and operational efficiencies. The acquisition leverages Gables’ 108,000 sq.ft. vertically integrated manufacturing facility, supporting quality control and innovation under one roof, which is crucial for maintaining competitive American manufacturing standards.
Both companies' leadership expressed optimism about the partnership's role in enhancing American manufacturing and engineering. The partnership is expected to continue supporting and growing Gables Engineering's research and development investments in flight deck technologies, with plans to continue investing in research and development for advanced flight deck technologies.
Andrew M. Jackson represents the senior leadership of Gables Engineering, while Laurans A. Mendelson, Eric A. Mendelson, and Victor H. Mendelson are the Executive Chairman and Co-Chief Executive Officers of HEICO Corporation.
In summary, the acquisition materially strengthens HEICO’s avionics controls segment, enhances its dual-market reach (OEM and aftermarket), and solidifies its role in advancing U.S.-based high-technology manufacturing within the aerospace sector. The deal is expected to be accretive to HEICO’s earnings within one year, demonstrating confidence in the acquisition’s immediate value creation and financial discipline.
[1] GlobeNewswire [2] Aviation Today [3] Aerospace-Technology [4] Aviation Week Network
- The partnership between HEICO Corporation and Gables Engineering, both industry leaders in their respective fields of aviation and finance, will combine technology to enhance avionics production, with the goal of boosting HEICO's earnings within a year.
- The acquisition of Gables Engineering by HEICO Corporation, a significant move in the avionics industry, reinforces HEICO's commitment to American manufacturing excellence, leveraging Gables’ advanced technology, and expertise to maintain competitive standards in American manufacturing.
