- Héroux-Devtek (TSX:HRX) will be acquired by an affiliate of U.S.-based private equity firm Platinum Equity Advisors, LLC, for C$1.35 billion
- The transaction values Héroux-Devtek shares at C$32.50 each, a 28 per cent premium over the closing share price on Thursday
- This acquisition marks a new chapter for Héroux-Devtek, as it joins the portfolio of Platinum Equity, a firm known for its extensive expertise and investment in industrial and manufacturing sectors
- Héroux-Devtek Inc. stock opened trading at C$31.00 per share
Héroux-Devtek (TSX:HRX) will be acquired by an affiliate of U.S.-based private equity firm Platinum Equity Advisors, LLC, for C$1.35 billion.
The transaction values Héroux-Devtek shares at C$32.50 each, a 28 per cent premium over the closing share price on Thursday, and a 47 per cent premium over the 90-day volume-weighted average trading price per share on the TSX for the period ending on Thursday.
News of this acquisition agreement signing follows a review led by a committee of independent Héroux-Devtek directors who explored various alternatives for the corporation. This thorough process culminated in the arrangement agreement with Platinum Equity, intending to reach a favourable outcome for Héroux-Devtek shareholders.
In a significant commitment to Héroux-Devtek’s future, Platinum Equity has engaged in discussions with Caisse de dépôt et placement du Québec, pledging to maintain and invest in the company’s headquarters and other operations in Québec. This includes sustaining the manufacturing operations and ensuring the headquarters continues to oversee the management functions of the business at a level consistent with current activities.
This acquisition marks a new chapter for Héroux-Devtek, as it joins the portfolio of Platinum Equity, a firm known for its extensive expertise and investment in industrial and manufacturing sectors. The partnership is expected to enhance Héroux-Devtek’s growth and operational capabilities, leveraging Platinum Equity’s resources and long-term vision.
“We have come a long way since my business partner and I bought Héroux Inc. in 1985. Thanks to the hard work and dedication of our employees and the trust of our customers and business partners, we have grown into a leading international manufacturer of aerospace products and the world’s third-largest landing gear manufacturer,” Héroux-Devtek’s chairman of the board, Gilles Labbé, said in a news release. “In the coming years, our Saint-Hubert R&D Centre will pursue its mission by developing innovative solutions and products aligned with our customers’ evolving needs.”
The transaction is expected to close before the end of the company’s current fiscal year, March 31, 2025.
Platinum Equity is a global investment firm with a focus on mergers, acquisitions and operations. Founded in 1995, the firm has completed more than 450 acquisitions across a wide range of industries, including manufacturing, distribution, transportation and logistics.
Catering to the defence and commercial sectors, Héroux-Devtek develops, manufactures and repairs aircraft landing gear, hydraulic and electromechanical actuators, custom ball screws and fracture-critical components for the global aerospace market.
Héroux-Devtek Inc. stock (TSX:HRX) opened trading more than 22 per cent higher at C$31.00 per share.
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(Top photo: Héroux-Devtek)