California-based Platinum Equity will pay $32.50 in cash per share for the Quebec-based company that makes parts for Boeing airliners and U.S. Navy fighter jets
Héroux-Devtek Inc. makes landing gear for Boeing airliners and U.S. Navy jets, and has a storied history that includes building the landing gear for the lunar module that Neil Armstrong piloted onto the moon’s surface during the Apollo 11 mission in 1969.Héroux-Devtek Inc., the Canadian maker of landing gear for Boeing airliners and U.S. Navy fighter jets, struck a deal to be acquired by American private equity firm Platinum Equity Advisors LLC in a transaction worth $1.35-billion.
Héroux-Devtek has a storied history that includes building the landing gear for the lunar module that Neil Armstrong piloted onto the moon’s surface during the Apollo 11 mission in 1969. It has grown organically and through acquisitions, and today manufactures the main landing gear for Boeing F/A-18 Super Hornet and Growler jets as well as Lockheed Martin’s C-130 Super Hercules and Boeing 777 aircraft among other contracts.
Platinum Equity said it will maintain and invest in Héroux-Devtek’s headquarters and other operations in Quebec, including manufacturing. The landing gear maker also has a research and development centre in Saint-Hubert, not far from its head office. A special board committee at the landing gear maker had been reviewing strategic alternatives and Thursday’s announced agreement is the result of that process. The purchase price represents a 28 per cent premium to Héroux-Devtek’s closing share price on July 10 and a 47 per cent premium to the 90-day volume-weighted average trading price per share on the Toronto Stock Exchange ending on that same date, the parties said.
The sale requires the approval of at least two-thirds of the votes cast by Héroux-Devtek shareholders at a special meeting to be held sometime in the coming months. If it is approved, the company will go private and cease to be publicly-traded. The Héroux-Devtek deal also represents the third go-private transaction so far this year where the management team has not been obliged to cash out. Nuvei chief executive officer Phil Fayer only agreed to sell a small proportion of his ownership stake to Advent and will still own 24 per cent of the company once the deal closes.
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