MIRAMAR, FL and HOLLYWOOD, FL / ACCESS Newswire / January 28, 2025 / HEICO Corporation (NYSE:HEI.A, HEI) today announced its Sunshine Avionics subsidiary entered into an exclusive license agreement and acquired key assets for the Boeing 777 AIMS (Airplane Information Management System) and Boeing 737NG/P-8/E-7 VIA (Versatile Integrated Avionics) product lines from Honeywell. The transaction was structured as an exclusive perpetual license and asset purchase. Sunshine Avionics is part of HEICO's Flight Support Group. Transaction terms and financial details were not disclosed.
HEICO stated that it expects the license and asset acquisition to be accretive to its earnings in the year following closing.
Honeywell's AIMS, the mission control of the Boeing 777, is an integrated modular avionics system that hosts cockpit integration technology, including primary flight-deck displays and maintenance diagnostics. The VIA is an integrated avionics system of the Boeing 737NG/P-8/E-7 for the flat panel display electronics and software, as well as flight management functions. Since the Boeing 737NG and 777's launch, Honeywell has been the OEM for both the AIMS and VIA. These systems form the hardware foundation of cockpit avionics, ensuring the safety and efficiency of critical functions with redundancy and fault-tolerance.
The transaction provides Sunshine Avionics with all rights to produce, sell, and repair Boeing 777 AIMS and Boeing 737NG/P-8/E-7 VIA hardware systems. Sunshine Avionics is now solely responsible for the hardware-related activities formerly performed by Honeywell and will conduct its engineering, production and customer support functions from Sunshine Avionics' Miramar, FL facilities.
Miramar-based Sunshine Avionics is a leading provider of the highest quality MRO services and manufactured parts for the advanced avionics aftermarket and OEM production support. Sunshine Avionics' significant investments in automatic test equipment (ATE), combined with a talented team of hands-on engineers, has resulted in efficient, high-quality services with significantly reduced turn times. Sunshine Avionics leads the industry by providing the most innovative cost saving solutions available and a commitment to outstanding customer service and reliability.
Sunshine Avionics was founded in 2004 by Leon Gonzalez and Pablo Dominguez. Over 20 years, they developed a proprietary process which yields innovative and novel repair solutions. In 2024, Sunshine Avionics expanded its organization to include a Manufacturing division through an exclusive license and asset purchase agreement for the Boeing 737NG/777 Cockpit Displays and Legacy Displays product line from Honeywell, growing to accommodate more than 110 Team Members across both divisions. As a whole, Sunshine Avionics provides support for over 10,000 Line Replaceable Units (LRUs) annually.
Leon and Pablo jointly commented, "This is a significant advancement for Sunshine Avionics, as we expand our capabilities and technical competency, further strengthening legacy fleet sustainment to better serve our customers. This transaction also recognizes Sunshine Avionics' talented Team Members who share a passion for avionics and customer service excellence."
Laurans A. Mendelson, HEICO's Chairman and Chief Executive Officer, along with Eric A. Mendelson, HEICO's Co-President and CEO of its Flight Support Group commented, "We are proud to support Leon, Pablo, and the Sunshine Avionics team in yet another successful transaction with Honeywell. This transaction demonstrates HEICO's commitment to acquiring product lines of increasing importance and to insourcing high-skill manufacturing jobs to the United States, and we will work hard to ensure a successful transition occurs for our customers."
HEICO Corporation 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 www.heico.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 as a result of factors including: the severity, magnitude and duration of the COVID-19 Pandemic; HEICO's liquidity and the amount and timing of cash generation; lower commercial air travel caused by the COVID-19 Pandemic and its aftermath, 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; our ability to make acquisitions and achieve operating synergies from acquired businesses; customer credit risk; interest, foreign currency exchange and income tax rates; 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; and defense spending or budget cuts, which could reduce our defense-related revenue. 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.
