Eyeing to boost its business jet power solutions, Heico is acquiring an 88% stake in Mid Continent Controls, with projected earnings of $15 million annually.
American aerospace and electronics company Heico is set to acquire an 88% stake in Mid Continent Controls (MC2), a firm specialising in power and entertainment components for business jets.
While the financial details of the acquisition remain undisclosed, Heico has stated that it will involve a cash payment at closing, with crucial managers at MC2 retaining ownership of the remaining shares. This marks Heico’s fourth acquisition in the past year.
Additionally, the aerospace conglomerate anticipates the acquisition will enhance its earnings within a year. Experts estimate that MC2 could generate around $15 million in annual sales for Heico and expand its presence in the business jet sector.
Thomas Hemphill, the son of MC2’s founder Rick Hemphill, will continue as president, along with general manager Mike Freel, who will remain shareholders. Rick Hemphill, who founded the company in 1996, will be a consultant. Heico also indicated that it expects a low turnover among MC2’s approximately 60 employees due to the acquisition. MC2 will also join Heico’s Radiant Power group, which operates in similar markets.
Heico’s chairman and CEO Laurans Mendelson, president Victor Mendelson and Radiant Power president Anish Patel praised MC2 for its exceptional products, quality, and customer service, stating that the company’s entrepreneurial spirit aligns perfectly with Heico’s acquisition strategy.
MC2, located in Derby, Kansas, designs and manufactures in-cabin power and entertainment systems, including power outlets, distribution modules, cabin management systems, multimedia ports, seat controls, and switch panels. The company supplies specialised components for various business aircraft during production and aftermarket production.
