Company: HEI-A
Filing Date: 2025-12-22
Form Type: 10-K
Source: 0000046619-25-000082
Chunk: 96

Company: HEICO CORP
Filing Date: 2025-12-22
Form: 10-K
Item: Item 8
Chunk 96
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 Company.  Subsequent to the acquisition date, the Company integrated Wencor into the FSG.  Wencor is a large commercial and military aircraft aftermarket company offering factory-new FAA-approved aircraft replacement parts, value-added distribution of high-use commercial and military aftermarket parts, and aircraft and engine accessory component repair and overhaul services.  Wencor expands the Company’s aftermarket product offerings, enabling the combined company to offer even greater savings and capabilities to its customers, while expanding its new products and services development capacity.  The aggregate purchase price consisted of $1.9 billion in cash, subject to certain working capital, debt and other customary adjustments, and 1,137,628 shares of HEICO Class A Common Stock.  The cash consideration was paid using proceeds from the Company's revolving credit facility and from the sale of senior unsecured notes.  See Note 5, Long-Term Debt, for additional information.  The total consideration included an accrual of $17.0 million as of the acquisition date representing the estimated fair value of contingent consideration the Company may have been obligated to pay in accordance with an agreement it assumed related to an acquisition Wencor consummated in fiscal 2023 prior to the Wencor Acquisition.  The following table summarizes the total consideration for the acquisition of Wencor (in thousands):Cash paid $1,923,098 Less: cash acquired (29,984)Cash paid, net 1,893,114 Issuance of common stock for an acquisition161,373 Additional purchase consideration(121)Total consideration paid, net$2,054,366 

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The following table summarizes the allocation of the total consideration for the acquisition of Wencor to the estimated fair values of the tangible and identifiable intangible assets acquired and liabilities assumed (in thousands):Assets acquired:Goodwill $1,260,085 Customer relationships 397,400 Intellectual property120,400 Trade names53,200 Inventories250,798 Accounts receivable105,872 Property, plant and equipment36,251 Contract assets5,276 Other assets 30,230 Total assets acquired, excluding cash 2,259,512 Liabilities assumed:Accrued expenses63,024 Accounts payable56,187 Deferred income taxes56,753 Other liabilities 29,182 Total liabilities assumed 205,146 Net assets acquired, excluding cash$2,054,366 The primary items that generated the