HEICO Subsidiary Acquires Exclusive License And Key Related Assets For Select Honeywell Display Product Lines; Financial Terms Not Disclosed
Portfolio Pulse from Benzinga Newsdesk
HEICO Corporation's subsidiary Sunshine Avionics has acquired an exclusive license and key assets for select Honeywell cockpit display product lines, including those for Boeing 737NG/777. The deal, terms of which were not disclosed, is expected to be accretive to HEICO's earnings after the first year. Sunshine Avionics will now produce, sell, and repair these displays, taking over from Honeywell. The acquisition enhances Sunshine Avionics' capabilities and supports job insourcing to South Florida.
January 16, 2024 | 2:02 pm
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NEUTRAL IMPACT
Honeywell has divested exclusive rights to certain cockpit display product lines to HEICO's subsidiary, which may streamline Honeywell's operations and focus on other areas.
The impact on Honeywell's stock is neutral in the short term as the financial terms were not disclosed, and it is unclear how significant these product lines are to Honeywell's overall business.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 50
POSITIVE IMPACT
HEICO's Sunshine Avionics has secured an exclusive license for Honeywell's cockpit displays, which is expected to be earnings accretive post the first year. This enhances HEICO's product offerings and market position.
The acquisition of exclusive rights to Honeywell's display product lines is likely to have a positive impact on HEICO's short-term stock performance due to the expected accretive effect on earnings and the enhancement of its market position in avionics.
CONFIDENCE 80
IMPORTANCE 80
RELEVANCE 90