Hawker Beechcraft, the Kansas-based aircraft maker that filed for bankruptcy protection in May, has entered into an exclusivity agreement over a possible sale to Superior Aviation Beijing.
The Chinese company will buy Hawker for USD 1.79 billion and, over the course of the next six weeks, will make payments to support the firm’s jet-related operations until completion of the deal.
Definitive documentation is expected prior to the end of the 45-day exclusivity period.
Upon completion of the deal, which would be subject to regulatory approvals, Superior will maintain the target’s existing activities, while continuing to inject new funds.
Steve Miller, chief executive of Hawker Beechcraft said: “With Superior’s previous experience operating a US business and its demonstrated ability to quickly restore a business to profitability after emerging from Chapter 11, we believe a transaction with Superior would maximise value for Hawker Beechcraft and its stakeholders.
“Importantly, this combination would give Hawker Beechcraft greater access to the Chinese business and general aviation marketplace, which is forecast to grow more than 10.0 percent a year for the next 10-15 years.”
Bill Boisture, chairman of the target added: “The decision to move forward with Superior was based on two key factors: the bid for the company was the most attractive we received during the strategic review process and the going-forward plan offered the most continuity for our business, allowing us to preserve jobs, product lines and our ability to maintain our commitments to our customers.
“Superior is committed to maintaining Hawker Beechcraft’s strong presence in the United States and retaining its current employee base and experienced management team, while positioning the company for future growth at home and abroad.”
With 6,000 employees worldwide and more than 54,000 aircraft built since 1932, Hawker Beechcraft is a world-leader in its field, according to its website.
Headquartered in Wichita, the business is also present in Arkansas, the UK and Mexico.
Superior Aviation Beijing is active in the research & development, production and sale of general aviation engines and parts, and is majority-owned by Beijing Superior Aviation Technology Corporation.
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