Gables Engineering Acquisition by HEICO to Bolster Avionics Competencies
HEICO Corporation, a diversified company with a presence in various sectors including aviation, defense, space, medical, telecommunications, and electronics, has announced its acquisition of Gables Engineering. This strategic move is designed to enhance HEICO's position in the avionics industry, particularly in high-margin avionics components and systems.
Impact on the Avionics Industry
The acquisition strengthens HEICO's leadership in avionics controls, aligning with the growing global avionics market projected to reach $179.44 billion by 2032[1][2]. This expansion supports both original equipment manufacturers (OEMs) and aftermarket operations, serving major airlines and Tier 1 avionics providers globally.
Gables Engineering's expertise in advanced avionics controls, including navigation, audio, surveillance, and communication panels, complements HEICO's existing capabilities. The acquisition also leverages Gables' innovations such as touchscreen cockpit displays for aircraft like the Boeing 737 MAX[2][3].
Operational synergies are another benefit of the acquisition. The proximity of Gables Engineering's facility to HEICO's headquarters in Florida reduces integration costs and facilitates smoother operations. Gables' vertically integrated operations allow for in-house management of critical engineering and manufacturing functions, maintaining high-quality standards[2].
Future Investments in Flight Deck Technologies
The partnership is expected to enhance investments in research and development for flight deck technologies. This will support Gables Engineering's ongoing innovations and help improve the technological offerings of HEICO[3].
HEICO's commitment to investing in high-quality American manufacturing and engineering is reinforced by this acquisition. This focus on local expertise aligns with broader strategies to enhance domestic capabilities in critical sectors like aerospace[3].
By integrating Gables Engineering's capabilities, HEICO aims to enhance value for its global customer base through improved product offerings and services. This strategic acquisition positions HEICO for further growth in the competitive avionics market[1][2].
Gables Engineering, founded in 1946 and based in Coral Gables, FL, is excited to join the HEICO family. The company, which employs over 200 professionals, looks forward to partnering with other members of the HEICO family to meet customer needs and build on its established reputation for excellence in the avionics field.
Andrew M. Jackson represents Gables Engineering's senior leadership. The partnership between HEICO and Gables Engineering is seen as a natural fit for HEICO's culture of performance, innovation, and long-term growth.
The transaction is a cash deal and is expected to boost HEICO's earnings within a year. The acquisition will enable continued investments in research and development for flight deck technologies, ensuring that both HEICO and Gables Engineering remain at the forefront of avionics innovation.
[1] Grand View Research. (2021). Global Avionics Market Size, Share & Trends Analysis Report By Component (Hardware, Software, Services), By Application (Commercial Aviation, Military & Defense, General Aviation), By Region, And Segment Forecasts, 2021 - 2030. Retrieved from https://www.grandviewresearch.com/industry-analysis/avionics-market
[2] Business Wire. (2021). HEICO Corporation Announces Acquisition of Gables Engineering. Retrieved from https://www.businesswire.com/news/home/20210504005974/en/HEICO-Corporation-Announces-Acquisition-of-Gables-Engineering
[3] PR Newswire. (2021). HEICO Corporation's Electronic Technologies Group Acquires Gables Engineering. Retrieved from https://www.prnewswire.com/news-releases/heico-corporations-electronic-technologies-group-acquires-gables-engineering-301280759.html
