Aeronautics industry | Héroux-Devtek comes under American control

Héroux-Devtek, one of the major players in the aeronautics industry in Quebec, is coming under American control. With the blessing of its largest shareholder – the Caisse de dépôt et placement du Québec (CDPQ) – the landing gear specialist has accepted a purchase offer from a Californian firm.

Published at 8:38 a.m.

Updated at 8:54 a.m.

Announced Thursday, the transaction values ​​the Quebec multinational at $1.35 billion. Platinum Equity Advisors is offering $32.50 for each share of Héroux-Devtek, which represents a premium of about 30% compared to the stock’s closing price on Wednesday.

“We have come a long way since my business partner and I acquired Héroux Inc. in 1985,” said the company’s executive chairman of the board, Gilles Labbé, in a press release.

Héroux-Devtek’s senior management, including Mr. Labbé and President and CEO Martin Brassard, will transfer their shares into the new entity that will own the landing gear and aerospace components specialist. Mr. Labbé and Mr. Brassard own about 10% of Héroux-Devtek’s shares, according to financial data firm Refinitiv.

The largest shareholder of the Quebec manufacturer with a stake of approximately 14.3%, the CDPQ approves this change of control. The Quebecers’ nest egg states that Héroux-Devtek will maintain its head office in Longueuil, in the southern suburbs of Montreal, and that Platinum Equity Advisors will invest in Quebec, without however mentioning an amount.

“It is in response to strong commitments on activities in Quebec that the CDPQ supports the transaction,” says the Vice-President and Head of Quebec at the Caisse, Kim Thomassin.

The Fonds de solidarité FTQ is the third largest shareholder of Héroux-Devtek, with a stake of around 11%.

With 15 sites in North America and Europe, Héroux-Devtek has some 1,800 employees. Last year, the company had sales of approximately $630 million in addition to net profits of $38 million.



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