HEICO Corporation HEI recently declared that its Flight Support Group business segment has acquired 90% of Millennium International’s stakes. The acquiree provides business jet avionics repair solutions, with a focus on offering mission-critical repair and maintenance of both next-generation and legacy avionics systems and components.

HEICO predicts the purchase will be accretive to its earnings in the year after the closure of the transaction.

How Will the Buyout Benefit HEI Stock?
 

Millennium’s acquisition is expected to strengthen HEICO’s footprint in the aerospace and defense industry, particularly in the repair and overhaul business space. Millennium supports more than 1,000 avionic customers and facilities worldwide, ranging from business, commercial air transport and military to high-end general aviation. It provides extensive services for the repair, overhaul and operational needs of flight support organizations of every size.

With air travel rapidly increasing worldwide, the demand for repair and overhaul services for business and commercial jets is also rising. At the same time, growing geopolitical tensions are driving more aerial military operations, which makes this acquisition a strategic move for Heico to effectively expand its market share in the jet avionics repair business space.

What’s Driving Acquisitions Among Aerospace Defense Players?
 

The aerospace-defense industry has seen a notable rise in mergers and acquisitions in recent times due to several factors, like the growing emphasis on cost-reduction initiatives, diversifying the portfolio to tackle competition and achieving economies of scale, along with operational efficiency to attain long-term goals. These transactions are becoming more significant, allowing businesses to grow as they see fit by expanding their operations, gaining access to new skills, developing technologies, producing higher-quality goods and services, and capturing larger market shares.

HEICO’s latest decision to acquire Millennium International also seems to have been motivated by the aforementioned factors.

Other defense companies that have recently indulged in valuable acquisition deals are as follows:

In January 2025, Curtiss-Wright Corporation CW completed the acquisition of Ultra Energy for $200 million in cash.  The buyout is expected to expand Curtiss-Wright’s portfolio with highly complementary, crucial measurement and control solutions for upgrading current commercial nuclear power plants and designing new and advanced power plants, such as compact modular reactors.

CW has a long-term (three to five years) earnings growth rate of 11.9%. The Zacks Consensus Estimate for its 2025 sales implies an improvement of 6.8% from the 2024 estimated figure.

On Feb. 3, 2025, Teledyne Technologies, Inc. TDY announced that it has completed the acquisition of some selected aerospace and defense electronics businesses from Excelitas Technologies Corp. for nearly $710 million. This buyout is expected to strengthen TDY’s footprint in the aerospace and defense industry.

TDY has a long-term earnings growth rate of 7.4%. The Zacks Consensus Estimate for its 2025 sales implies an improvement of 3.8% from the 2024 reported figure.

HEICO Stock Price Movement
 

In the past six months, shares of HEICO have risen 3.3% compared with the industry’s growth of 25.7%.

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HEI’s Zacks Rank & A Stock to Consider
 

HEI currently carries a Zacks Rank #3 (Hold).

A better-ranked stock in the same industry is Kratos Defense & Security Solutions, Inc. KTOS, which currently sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for KTOS’ 2025 sales is pegged at $1.28 billion, which indicates year-over-year growth of 12.2%. The Zacks Consensus Estimate for 2025 earnings per share stands at 59 cents, which implies year-over-year growth of 27.9%.

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Teledyne Technologies Incorporated (TDY) : Free Stock Analysis Report

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