HEICO Corporation acquires leading business jet in-cabin component maker

HEICO Corporation today announced that its Electronic Technologies Group acquired approximately 88% of Mid Continent Controls, Inc. (MC2) for cash at closing. Key MC2 managers will continue to own the balance of the company. Additional financial details were not disclosed.

HEICO stated that it expects the acquisition to be accretive to its earnings within the year following the acquisition.

Derby, KS-based MC2 is a niche designer and manufacturer specializing in proprietary in-cabin power and entertainment components and subsystems for business jets. Its core products include power outlets, power distribution modules, cabin management systems, multimedia connectivity ports, seat controls and switch panels.

MC2's products enhance the aircraft user experience, enabling passengers to mirror their ground experience in the air as they stay connected in flight. The company offers hundreds of different niche parts used on a wide range of business aircraft, while serving both new aircraft production and the aftermarket.

Founded in 1996 by industry veteran Rick Hemphill, MC2 employs approximately 60 people at its Derby, KS engineering, production and testing facility. Rick Hemphill's son, Thomas Hemphill, will continue leading MC2 as its president, along with Mike Freel, MC2's General Manager. Thomas Hemphill and Mr. Freel will also remain company shareholders. Rick Hemphill will continue as a guiding consultant to MC2. HEICO stated that MC2 will operate from its Derby, KS location and that it does not expect material Team Member turnover to result from the acquisition. MC2 will report to HEICO's Radiant Power Group, which serves some of the same markets as MC2.

Laurans A. Mendelson, HEICO's Chairman and Chief Executive Officer, along with Victor H. Mendelson, HEICO's Co-President and Anish V. Patel, Radiant Power's President, together remarked, "Mid Continent Controls is a very special company known for excellent products, quality and customer service. Their approach to business and their entrepreneurial energy are exactly what we look for in acquisitions. We welcome Tom, Mike, Rick and the entire Mid Continent Controls team to the HEICO family."

Rick Hemphill, Tom Hemphill and Mike Freel jointly commented, "After decades carefully building this special business, we wanted Mid Continent Controls to be part of a great company which values our people, customers and way of doing business as much as we have. We feel we found that partner in HEICO and are excited about the potential we can accomplish together."

TM Capital LLC represented the sellers in the transaction. HEICO was not externally represented.