HEICO Shares Gain On Deal To Buy Axillon's Fuel Containment Business For Undisclosed Terms
HEICO Corp. shares rose 2.4% after announcing the acquisition of Axillon Aerospace's Fuel Containment Business from SK Capital Partners for undisclosed terms. The deal, expected to close in Q1 2026, is anticipated to enhance HEICO's earnings. Axillon specializes in military fuel-cell design and manufacturing, employing around 530 people. HEICO plans to retain the current management team and rename the business post-acquisition. Financial advisors included Guggenheim Securities and Lazard, with legal counsel from Latham & Watkins LLP and Pillsbury Winthrop Shaw Pittman LLP.
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HEICO Corp.'s (HEI, HEI.A) shares gained around 2.4 percent on Monday's regular trading after the firm announced that its Electronic Technologies Group has agreed to acquire Axillon Aerospace's Fuel Containment Business from affiliates of SK Capital Partners, LP for cash payable at closing.
The financial terms and details were not disclosed. HEICO stated that it expects the acquisition to be accretive to its earnings within the year following closing.
Following the deal closure, SK Capital will continue to own Axillon Aerospace's Engineered Composites business.
The deal closure is expected to occur in the first calendar quarter of 2026, subject to customary closing conditions, including clearance under the Hart-Scott-Rodino Antitrust Improvements Act.
HEICO plans to change Axillon Fuel Containment's name post-closing to a name that will soon be selected. It will remain in its current facilities after closing.
HEICO stated that it does not expect any material staff turnover at Axillon Fuel Containment, which will continue to be overseen by its current management team, led by Tom Holst.
Axillon Fuel Containment is a military specification or MIL-SPEC fuel-cell designer and manufacturer for US-built military aircraft, as well as certain commercial aircraft and military ground vehicles. The business also makes sealants used in aerospace and defense applications.
Axillon Fuel Containment was originally part of Goodyear Tire & Rubber. It pioneered self-sealing fuel tanks during World War II and later created the world's first crashworthy fuel-cell.
The business employs around 530 people in its nearly 600,000 square foot engineering, manufacturing and management facility.
Guggenheim Securities and Lazard served as financial advisors to Axillon Aerospace, and Latham & Watkins LLP acted as legal counsel. Pillsbury Winthrop Shaw Pittman LLP acted as legal counsel to HEICO.
On Monday, Heico's shares closed regular trading at $330.64 on the NYSE, up 2.36 percent. In pre-market activity, the shares were at $331.00, up 0.11 percent.
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