Respected General Aviation aircraft manufacturer Cirrus Aircraft has announced it has been acquired by the China Aviation Industry General Aircraft Company.
According to Cirrus, the manufacturer has entered into a definitive merger agreement with the Chinese Government-owned China Aviation Industry General Aircraft Company (CAIGA), which will see CAIGA acquire Cirrus.
While rumours about Cirrus courting Chinese interests - with tours of their facilities in Duluth, Minnesota - have surfaced in recent months, news of the sale will come as a bit of a surprise to devotees of the popular SR22 family of aircraft.
Cirrus President and CEO, Brent Wouters, says the transaction will benefit both parties due to a common vision to grow the General Aviation enterprise worldwide.
"CAIGA brings new resources that will allow us to expedite our aircraft development programs and accelerate our global expansion.” Wouters said. “CAIGA understands the strength and the talent of Cirrus’s workforce and the prominence of the Cirrus brand in General Aviation. Through this transaction, CAIGA will invest in our employees in both Minnesota and North Dakota by committing to the continued use of our production facilities.”
Meng Xiangkai, President of the Zhuhai-based (Guandong Province) CAIGA, spoke optimistically about the future partnership with Cirrus.
"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 position in the global General Aviation industry, as well as to produce greater job opportunities in Duluth and Grand Forks."
Likewise, Cirrus’s Chairman and Co-Founder Dale Klapmeier spoke positively of the move.
“On behalf of everyone at Cirrus, we are thrilled to make this announcement," he said. "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.”
While all this optimism paints a pretty picture, many GA industry insiders will view the move with skepticism, particularly after the recent sale of Teledyne Continental Motors, another major US General Aviation entity, to Chinese interests.
The transaction is expected to close around mid-2011, and the acquisition is subject to customary closing conditions.
The Cirrus SR22. (John Absolon)
