Chinese Company to Buy Teledyne Technologies
December 16, 2010 — Teledyne Technologies is selling its general aviation piston engine businesses, Teledyne-Continental Motors and Teledyne Mattituck Services Inc., to Technify Motor (USA) LTD, a subsidiary of the Chinese holding company AVIC International, for $186 million in cash. The sale was announced jointly December 14 by the two companies, and is expected to be completed in the first quarter of 2011.
AVIC International expects to retain the senior management of Continental Motors and maintain Continental Motors’ global headquarters in Mobile, Alabama, as well as add to the company’s current workforce of 400 employees. Continental has manufactured FAA-certified piston engines, spare parts, and components used in small propeller-driven general aviation aircraft around the world for more than 80 years.
According to a joint announcement, this transaction positions Continental Motors to compete globally, especially in serving growing overseas markets including China. With a recent opening of airspace to GA flight, officials anticipate rapid expansion of private flying in China and a rapid growth of aircraft from the nation’s current fleet of about 900 private planes. The U.S. fleet is about 230,000 aircraft.
“I am excited about the opportunity to work with the AVIC International team,” said Rhett Ross, president of Continental Motors. “AVIC International will greatly strengthen Continental Motors’ market access. In addition, increased investment will accelerate new products, such as Continental Motors’ TD-300 diesel engine, which is well-suited to growing regions given international fuel availability. The transaction will allow Continental Motors to continue to be a global leader in the general aviation piston engine industry.”
Wu Guangquan, president and CEO, AVIC International, stated, “We are impressed with Continental Motors’ products, employees, and facilities. Furthermore, we were attracted to Mobile’s international environment focus and the continually growing concentration of aviation-related international companies in the Mobile area. We look forward to working with current leadership at Continental Motors to expand the Continental Motors facility to supply expected growth in the general aviation market worldwide, in particular, to ensure safe and reliable aircraft operations for all customers.”
The acquisition of Continental Motors by AVIC International is subject to clearance under the Hart-Scott-Rodino Antitrust Improvements Act and by the U.S. Government’s Committee on Foreign Investment in the United States (CFIUS), as well as obtaining all relevant Chinese government approvals.
AVIC International is headquartered in Beijing, China, with 60 international offices and seven listed companies with consolidated annual sales of approximately $6 billion. Aviation customers include Boeing, Airbus, Snecma, and Honeywell. For more information, click here.