Company: HEI-A
Filing Date: 2025-12-22
Form Type: 10-K
Source: 0000046619-25-000082
Chunk: 98

Company: HEICO CORP
Filing Date: 2025-12-22
Form: 10-K
Item: Item 8
Chunk 98
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 this acquisition will further HEICO's strategy of expanding its already wide range of mission-critical and Hi-Rel components for the most demanding applications, as well as provide HEICO with added broad geographic and product diversity, including in the important European market.  The majority of the remaining 6.31% interest is owned by certain members of Exxelia's management team.  Additionally, as a result of this acquisition, the Company also obtained a 90% ownership interest in Alcon Electronics Pvt. Ltd. (“Alcon”), which is an existing subsidiary of Exxelia.  The remaining 10% interest continues to be owned by a certain member of Alcon’s management team.  See Note 13, Redeemable Noncontrolling Interests, for additional information.  The purchase price of this acquisition was paid in cash using proceeds from the Company's revolving credit facility.The following table summarizes the total consideration for the acquisition of Exxelia (in thousands):Cash paid $515,785 Less: cash acquired (11,789)Total consideration paid, net$503,996 As noted above, the Company acquired all of the preferred stock of Exxelia.  Pursuant to the terms of the acquisition, Exxelia’s preferred stock accrues dividends at 5.18% per annum.  

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The following table summarizes the allocation of the total consideration for the acquisition of Exxelia to the estimated fair values of the tangible and identifiable intangible assets acquired and liabilities and noncontrolling interests assumed (in thousands):Assets acquired:Goodwill $328,197 Customer relationships 61,943 Intellectual property44,044 Trade names21,703 Property, plant and equipment54,452 Inventories50,481 Accounts receivable41,708 Other assets 13,946 Total assets acquired, excluding cash 616,474 Liabilities assumed:Deferred income taxes31,327 Accounts payable21,773 Accrued expenses 18,159 Short-term debt15,082 Other liabilities 13,982 Total liabilities assumed 100,323 Noncontrolling interests in consolidated subsidiaries 12,155 Net assets acquired, excluding cash$503,996 The primary items that generated the goodwill recognized were the premiums paid by the Company for the future earnings potential of Exxelia and the value of its assembled workforce that do not qualify for separate recognition, however, benefit both the Company and the noncontrolling interest holders.  The fair value