MIAMI, FL, PARIS, FRANCE, and CHENNAI, INDIA / ACCESSWIRE / November 4, 2024 / HEICO Corporation today announced that its Paris, France-based Exxelia subsidiary acquired 70% of SVM Private Limited ("SVM") for cash paid at closing. Exxelia is part of HEICO's Electronic Technologies Group. SVM's management retains the remaining 30% ownership.
HEICO stated that it expects the acquisition to be accretive to its earnings within the year following closing.
Based in Chennai, India, SVM is a leading designer and manufacturer of high-performance electronic passive components and sub-systems, including critical magnetic components and busbars, specifically serving the healthcare and industrial end-markets. SVM primarily serves Indian customers, including subsidiaries of large US and European multi-national firms, along with other international clients.
Founded in 1989 by Hemaltha and Ramprasad Meka, SVM has 35 years of expertise in the design, development, and manufacturing of coils, transformers, and laminated or coated/plated busbars, among other products. The company has become a leader in critical magnetic solutions for medical imaging applications, leveraging its deep understanding of all relevant standards and strong commitment to quality.
Mr. Meka, who serves as SVM's Founder and Managing Director, will continue to own 30% of SVM and will remain in his current leadership role. HEICO stated that SVM will operate from its current Chennai facility and that it does not expect any material Team Member turnover to result from the acquisition.
Through this acquisition, Exxelia, which counts medical imaging equipment products among its key markets, will enhance its product offering with busbars, along with SVM's know-how and expertise in magnetics, while strengthening its position in the medical sector, a key development area.
Exxelia has extensive experience in India through its highly-successful Alcon subsidiary in Nashik, India, along with other business activities in the country.
Laurans A. Mendelson, HEICO's Chairman and CEO, along with Victor H. Mendelson, HEICO's Co-President, and Paul Maisonnier, Exxelia's Chief Executive Officer, said: "We are thrilled to welcome SVM to the family! SVM is a well-established leader in its niche market, recognized for its great technology and talented team. By joining forces with SVM, we are significantly enhancing our magnetic electronics product portfolio across a wide range of markets. Additionally, we are expanding our presence in India with a new magnetic electronics manufacturing site, complementing our existing capacitor facility. This strategic move will not only strengthen our support for French customers in meeting their offset obligations, but also enhance our ability to capitalize on the rapidly growing Indian market."
Ramprasad Meka, SVM's Founder and Managing Director, said: "SVM is delighted to be a part of Exxelia, a human-sized passive component group with deep expertise in magnetics, power electronics, and the medical sector. This partnership marks a significant milestone in SVM's journey, enabling us to retain our talented team, while benefiting from Exxelia's vast global sales network. We look forward to this new chapter, which will accelerate our international growth and enhance our global reach."
HEICO Corporation (NYSE:HEI) is engaged primarily in the design, production, servicing and distribution of products and services to certain niche segments of the aviation, defense, space, medical, telecommunications and electronics industries through its Hollywood, Florida-based Flight Support Group and its Miami, Florida-based Electronic Technologies Group. HEICO's customers include a majority of the world's airlines and overhaul shops, as well as numerous defense and space contractors and military agencies worldwide, in addition to medical, telecommunications and electronics equipment manufacturers. For more information about HEICO, please visit our website at https://www.heico.com.
About SVM
SVM is a leading Indian designer and manufacturer of magnetics, busbars and electro-mechanical components, with a state-of-the-art facility in Chennai, India. The company sells different magnetic products (inductors, transformers, bobbins for high and low frequency applications) as well as many different busbars: multi-layer laminated, flexible, resin cast or with specific coating (epoxy powder, PVC coated) and plating (nickel & gold, silver, tin). SVM serves the healthcare and industrial market and controls every step of product development internally, thanks to vast in-house tooling.
For more information, visit http://www.svmpl.in
About Exxelia
Exxelia is a leading global designer and manufacturer of high performance passive components and subsystems with factories in France, United States, India, Morocco and Vietnam. Exxelia's product portfolio includes a wide range of capacitors (film, tantalum, ceramic and electrolytic capacitors), ruggedized magnetic products (inductors, transformers, rotor, stator, etc.), resistors, slip rings, position sensors, medical sensors and high-precision mechanical parts. Recognized worldwide for its advanced design and technical expertise, Exxelia develops both "catalog" and "custom" products exclusively serving high-reliability markets such as aeronautic, space, defense, medical, transportation, telecommunication infrastructure and advanced industrial applications.
Additional information can be found at http://www.exxelia.com
Certain statements in this press release constitute forward-looking statements, which are subject to risks, uncertainties and contingencies. HEICO's actual results may differ materially from those expressed in or implied by those forward-looking statements. Factors that could cause such differences include, among others: the severity, magnitude and duration of public health threats, such as the COVID-19 pandemic; our liquidity and the amount and timing of cash generation; lower commercial air travel, airline fleet changes or airline purchasing decisions, which could cause lower demand for our goods and services; product specification costs and requirements, which could cause an increase to our costs to complete contracts; governmental and regulatory demands, export policies and restrictions, reductions in defense, space or homeland security spending by U.S. and/or foreign customers or competition from existing and new competitors, which could reduce our sales; our ability to introduce new products and services at profitable pricing levels, which could reduce our sales or sales growth; product development or manufacturing difficulties, which could increase our product development and manufacturing costs and delay sales; cyber security events or other disruptions of our information technology systems could adversely affect our business; and our ability to make acquisitions, including obtaining any applicable domestic and/or foreign governmental approvals, and achieve operating synergies from acquired businesses; customer credit risk; interest, foreign currency exchange and income tax rates; and economic conditions, including the effects of inflation, within and outside of the aviation, defense, space, medical, telecommunications and electronics industries, which could negatively impact our costs and revenues. 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 Form 10-K, Form 10-Q and Form 8-K. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except to the extent required by applicable law.
Contact Information
Victor H. Mendelson
(305) 374-1745 ext. 7590
Carlos L. Macau, Jr.
(954) 987-4000 ext. 7570
SOURCE: HEICO Corporation
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