China's Chongqing Helicopter Investment Company (CQHIC) has acquired US company Enstrom: a manufacturer of light helicopters for commercial and military applications.
The acquisition, announced on 7 January, is one of the most high profile in a series of transactions in which Chinese companies have purchased US companies involved in the aerospace and defence sector.
Statements said that CQHIC's acquisition of Enstrom was concluded on 27 December 2012 when the two companies agreed an equity settlement deal, the value of which was not revealed. CQHIC and Enstrom had earlier signed an equity purchase agreement, under which the Chinese company, based in Chongqing in Southwest China, submitted a bid to acquire a 100% stake in Enstrom.
The two companies held an "acquisition closing ceremony" on 4 January, and an Enstrom spokeswoman later confirmed to IHS Jane's that the deal had been approved by US authorities. "CFIUS [the Committee on Foreign Investment in the United States] approval was obtained prior to the sale being finalised," she said.
CQHIC's chairman, Huang Yong, said in the statement that the acquisition of Enstrom will improve the research, development, manufacturing, and marketing of CQHIC and that it would help Enstrom fulfil a target of securing a 30% market share of the Chinese light helicopter sector over the next 10 years. This business sector is expected to grow rapidly within the next decade when Beijing eases, as it has pledged to do so, long-standing rules governing use of low-altitude airspace.
Enstrom President Jerry Mullins said that that deal will enable Enstrom to expand to a "new level". "It will provide Enstrom with the needed resources to enhance marketing efforts in China and around the world," he said. "This strong ownership will allow further growth of our business in Menominee, Michigan, to meet the demands of the increasing markets around the world, especially Asia."
Enstrom is focused on the production of light helicopters for law enforcement, commercial, and private applications, although it has secured some notable military contracts. The company won deals in 2010 to provide the Japan Ground Self-Defence Force and the Royal Thai Army with 30 and 16 units respectively of its 480B multirole light helicopter. Both forces are using the 480B for training purposes.
CQHIC's core activities include the research, development, and production of helicopter parts and components. The company also undertakes maintenance, repair, and overhaul activities.
The company was established in January 2011 with a registered capital of CNY3 billion (USD477 million). Its major shareholders comprise a range of regionally state and privately owned enterprises including the Chongqing Electrical and Mechanical Holding Group, the Chongqing Fu Asset Management Company and Chongqing Liangjiang New Area Development Investment Group.
The acquisition, announced on 7 January, is one of the most high profile in a series of transactions in which Chinese companies have purchased US companies involved in the aerospace and defence sector.
Statements said that CQHIC's acquisition of Enstrom was concluded on 27 December 2012 when the two companies agreed an equity settlement deal, the value of which was not revealed. CQHIC and Enstrom had earlier signed an equity purchase agreement, under which the Chinese company, based in Chongqing in Southwest China, submitted a bid to acquire a 100% stake in Enstrom.
The two companies held an "acquisition closing ceremony" on 4 January, and an Enstrom spokeswoman later confirmed to IHS Jane's that the deal had been approved by US authorities. "CFIUS [the Committee on Foreign Investment in the United States] approval was obtained prior to the sale being finalised," she said.
CQHIC's chairman, Huang Yong, said in the statement that the acquisition of Enstrom will improve the research, development, manufacturing, and marketing of CQHIC and that it would help Enstrom fulfil a target of securing a 30% market share of the Chinese light helicopter sector over the next 10 years. This business sector is expected to grow rapidly within the next decade when Beijing eases, as it has pledged to do so, long-standing rules governing use of low-altitude airspace.
Enstrom President Jerry Mullins said that that deal will enable Enstrom to expand to a "new level". "It will provide Enstrom with the needed resources to enhance marketing efforts in China and around the world," he said. "This strong ownership will allow further growth of our business in Menominee, Michigan, to meet the demands of the increasing markets around the world, especially Asia."
Enstrom is focused on the production of light helicopters for law enforcement, commercial, and private applications, although it has secured some notable military contracts. The company won deals in 2010 to provide the Japan Ground Self-Defence Force and the Royal Thai Army with 30 and 16 units respectively of its 480B multirole light helicopter. Both forces are using the 480B for training purposes.
CQHIC's core activities include the research, development, and production of helicopter parts and components. The company also undertakes maintenance, repair, and overhaul activities.
The company was established in January 2011 with a registered capital of CNY3 billion (USD477 million). Its major shareholders comprise a range of regionally state and privately owned enterprises including the Chongqing Electrical and Mechanical Holding Group, the Chongqing Fu Asset Management Company and Chongqing Liangjiang New Area Development Investment Group.
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