A major acquisition is set to take place in the aerospace industry as U.S. private equity firm, American Industrial Partners (AIP), has announced its plans to purchase Heroux-Devtek for a staggering $1.35 billion.
The deal, which is expected to close in the second half of 2021, will see AIP acquire all outstanding shares of the Quebec-based aerospace company at a price of $18.25 per share. This represents a 9.5% premium to Heroux-Devtek’s closing price on the Toronto Stock Exchange on Friday.
Heroux-Devtek, a leading manufacturer of landing gear and other aircraft components, has been in operation for over 70 years and has a global presence with facilities in Canada, the United States, the United Kingdom, and Spain. The company’s impressive portfolio includes clients such as Boeing, Lockheed Martin, and Airbus.
According to AIP, the acquisition of Heroux-Devtek aligns with their strategy of investing in market-leading industrial companies with strong growth potential. The private equity firm believes that the aerospace industry will continue to experience growth in the coming years, making Heroux-Devtek a valuable addition to their portfolio.
In a statement, Heroux-Devtek’s President and CEO, Martin Brassard, expressed his confidence in the deal, stating that it will provide the company with the resources and support needed to continue its growth and success in the aerospace market.
The acquisition is subject to regulatory approvals and the approval of Heroux-Devtek’s shareholders. However, the company’s Board of Directors has unanimously recommended that shareholders vote in favor of the deal.
This acquisition marks a significant milestone for both Heroux-Devtek and AIP and is expected to have a positive impact on the aerospace industry as a whole. With the deal set to close in the near future, all eyes will be on the two companies as they work towards a smooth transition and continued success in the industry.
