Camtronics Deal Boosts Heico’s Aspiring Repairs Business
Heico Corp’s recent acquisition of Camtronics feeds into an often-overlooked portfolio of regulator-approved repairs that the company plans to grow alongside its traditional parts manufacturer approval (PMA) business, the company’s top executive said.
"I think [it is] something that a lot of people often overlook, but yes, HEICO, we believe, is the largest independent repair and overhaul group focusing on the components market in the world,” CEO Laurans Mendelson told analysts on an Aug. 25 earnings call. “A key part of that strategy is using the [designated engineering representative, or DER] repairs.”
The company in June announced a deal to buy 80% of Texas-based Camtronics, which specializes in repairing antennas and certain heat transfer, galley, lavatory and fluid system components. It is one of a series of acquisitions the company has made during the pandemic, bolstering several areas of its business.
“We operate a very decentralized business where we've got businesses that focus on specific products,” Mendelson said. "Camtronics is particularly good in a number of the products that it does, and it does have DERs.”
Known chiefly for its thousands of new, OEM-alternative PMA parts, Heico also has a significant repair business. Much like its PMA strategy, it plans to expand the repair side as a way to offer broader sets of services.
"I think we've got the ability to develop more DERs,” Mendelson said. “And I think we're going to do very well because we offer...a full suite. It's not just walking in and offering a single DER. It's offering lots of different DERs. I think that's been an important part of the strategy.”