Cirrus to be Acquired by Chinese Aviation Company
February 28, 2011 — Cirrus Industries, Inc., and China Aviation Industry General Aircraft Co., Ltd. (CAIGA) have entered into a definitive merger agreement, with CAIGA acquiring Cirrus, the companies announced jointly on Monday. The transaction is expected to close around mid-2011, according to the announcement, which did not disclose the selling price.
“This transaction will have a positive impact on our business and our customers because we share a common vision with CAIGA to grow our general aviation enterprise worldwide,” said Brent Wouters, Cirrus’s president/CEO. “CAIGA brings new resources that will allow us to expedite our aircraft development programs and accelerate our global expansion.”Wouters also noted there would be a positive impact on jobs and job growth. “Through this transaction, CAIGA will invest in our employees in both Minnesota and North Dakota by committing to the continued use of our world-class production facilities.”
Dale Klapmeier, Cirrus chairman and co-founder, added “On behalf of everyone at Cirrus, we are thrilled to make this announcement. With this transaction, Cirrus will continue to develop and build the best, most exciting aircraft in the world. The original dream remains alive and well at Cirrus. We are just embarking on our next chapter on a global stage.”
CAIGA, headquartered in Zhuhai in the Guangdong Province of China, provides general aircraft products and related services. Its main businesses include the R&D and manufacturing of light piston aircraft, turboprop aircraft, jet, amphibious aircraft as well as their parts & components. It also provides services including general aviation operations, pilot training and aviation clubs. The company had total 2010 revenue of $2.9 billion.
Light piston aircraft is one of the company’s business focuses “We are very optimistic to begin our partnership with Cirrus and add Cirrus’s strong brand as the cornerstone in our aviation product portfolio,” said CAIGA President Meng Xiangkai. “We look forward to working with Cirrus’s management team to build upon Cirrus’s proven success and to further expand production volume in order to cement Cirrus’s existing leadership position in the global general aviation industry, as well as to produce greater job opportunities in Duluth and Grand Forks,” he added.
The transaction is expected to close around mid-2011 and is subject to customary closing conditions, including 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.
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