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Thursday, December 5, 2013

Odyssey looks to sell aircraft parts maker Wencor -sources, (NYSE: HEI)

Wencor Group, a private equity-owned manufacturer of commercial aircraft parts, is exploring a sale that could fetch around $600 million, according to people familiar with the matter. Buyout firm Odyssey Investment Partners LLC, which acquired Wencor for an undisclosed sum in 2010, has tapped investment bank Harris Williams to help find a buyer, the people said on Thursday, asking not to be identified because the matter is private.Wencor could attract interest from bigger industry rivals such as Heico Corp as well as from private equity firms, the people added. Representatives for Odyssey, Wencor, Heico and Harris Williams did not immediately respond to requests for comment.Based in Springville, Utah, Wencor provides aircraft parts to repair stations, operators of general aviation aircraft and major airlines according to its website.The company has annual earnings before interest, tax, depreciation and amortization of around $50 million and could trade for between 11 and 13 times that amount, some of the people said.

HEICO Corporation (HEICO), through its subsidiaries is the manufacturer of Federal Aviation Administration (FAA)-approved jet engine and aircraft component replacement parts, other than the original equipment manufacturers (OEMs) and their subcontractors. Shares of HEI traded higher by 1.4% or $0.77/share to $55.94. In the past year, the shares have traded as low as $32.25 and as high as $58.00. On average, 168912 shares of HEI exchange hands on a given day and today's volume is recorded at 65059.