Quebec aircraft landing gear manufacturer Héroux-Devtek will come under the control of an American company, while it will be purchased by a private equity firm based in California. The company, however, assures that it wants to remain “an international leader based in Quebec.”
The Longueuil-based company announced that U.S.-based Platinum Equity Advisors will acquire all of its outstanding shares at a price of $32.50 per share, putting the company’s total value at $1.35 billion.
Shares of Héroux-Devtek closed at $25.32 on the Toronto Stock Exchange on Wednesday.
The decision to proceed with the transaction was made following a review by an independent special committee. At the conclusion of its work, “the special committee and the board of directors unanimously concluded that the transaction is in the best interests of the company and its stakeholders.”
“We have come a long way since my business partner and I acquired Héroux in 1985,” recalled the company’s executive chairman, Gilles Labbé, in a press release.
“Through the hard work and dedication of our employees and the trust of our customers and business partners, we have become a leading international manufacturer of aerospace products and the third largest manufacturer of landing gear worldwide.”
The Caisse de dépôt et placement du Québec (CDPQ), which is Héroux-Devtek’s largest shareholder, participated in discussions surrounding the sale of the company, in particular to ensure that its main activities remain in Quebec.
Thus, the agreement with Platinum Equity provides that the company’s head office will remain in Longueuil and that its other activities will also remain in Quebec, including its research and development center in Saint-Hubert.
“It is in response to strong commitments from Platinum Equity on activities in Quebec that the CDPQ supports this transaction,” emphasized the CDPQ’s Senior Vice-President and Head of Quebec, Kim Thomassin.
Platinum Equity also assures that it wants to continue investing in the Saint-Hubert research and development center, but the extent of these investments has not been revealed.
“Having been born and raised in Quebec, I have great respect for the long tradition and distinguished history of the aerospace industry in the province and for Héroux-Devtek’s contributions to the industry,” said Platinum Equity Co-Chairman Louis Samson.
“We are pleased and honoured to have the opportunity to support a Quebec industry champion like Héroux-Devtek and to continue to strengthen its presence as a global leader,” he added.
The transaction, which is subject to customary closing conditions, including regulatory and shareholder approvals, is expected to close before the end of the Company’s current fiscal year, March 31, 2025.
Héroux-Devtek specializes in the design, development, manufacturing, repair, maintenance and overhaul of landing gear and other components for the aerospace market.
In addition to its head office in Longueuil and its research centre in Saint-Hubert, the company has facilities in Montreal and Laval, Ontario, the United States, the United Kingdom and Spain. In total, it has 1,800 employees.