Heico was a down-on-its-luck maker of a single aircraft part before the Mendelson family made the publicly-traded company soar—and a billion-dollar fortune for themselves
verybody told us it was impossible,” says Victor Mendelson.“Couldn’t be done,” adds his brother, Eric. “That we were going to fail,” Victor says.
estimates at $1.2 billion. Revenue reached $2.1 billion on profit of $328 million in fiscal 2019, both record highs. The origins of this story date back to 116th Street in Manhattan at Columbia University, their father’s alma mater. There, the brothers studied business and economics and grew particularly interested in one of the most prevalent trends of the time: the buyout game. The more they learned, the more convinced they became that they could pull off an LBO, too. Victor was the one to find Heico—started in 1957 and taken public in 1960—after chatting up a friendly stock broker familiar with the company.
Machinery that works on a component of airplane engines whirls at one of Heico's south Florida factories.To do so, Eric practically came to live in the hallways of the FAA’s Washington, D.C., headquarters. “They were really very, very thorough,” he says. But Eric wore them out with his own thoroughness. “We do full a metallurgical inspection on every single lot of parts we produce,” he says.
The Mendelsons don’t usually buy an entire firm. More often than not, they leave a fifth of it in the hands of the owners or the chief executives running the place to keep them incentivized.
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