China’s Superior Aviation To Buy Hawker Beechcraft

 - July 9, 2012, 5:35 PM
Cheng Shenzong, chairman of Superior Aviation Beijing, at a press conference at EAA AirVenture Oshkosh 2011 (Photo: Matt Thurber)

Superior Aviation of Beijing, China, has agreed to acquire financially troubled Hawker Beechcraft for $1.79 billion. Under the terms of the “strategic combination,” Superior Aviation also agrees to make payments over the next six weeks of the “exclusivity period” to support ongoing jet-related operations as a means of sustaining the jet business until the transaction closes. Since filing for Chapter 11 bankruptcy protection in May this year, Hawker Beechcraft had expressed an intent to emerge from bankruptcy as a complete entity. However, the agreement with Superior does not include Hawker Beechcraft Defense Company (HBDC), which would remain a separate entity. HBDC would continue to manufacture the T-6 trainer and pursue certification of its derivative AT-6 light attack aircraft. In the event HBDC is subsequently sold to a buyer acceptable to the U.S. government, up to $400 million of the $1.79 billion purchase price would be refundable to Superior. According to Hawker Beechcraft, Superior intends to maintain the Wichita-based OEM’s existing operations while investing “substantial capital” in the company and its business and general aviation product line. Hawker Beechcraft further notes that the decision to proceed with Superior came “after determining that its proposal would create the greatest value for the company and position it for long-term growth.” Hawker Beechcraft CEO Steve Miller pointed out that this acquisition “would give Hawker Beechcraft greater access to the Chinese business and general aviation marketplace, which is forecast to grow more than 10 percent a year for the next 10 to 15 years.” If negotiations with Superior are not concluded “in a timely manner,” Hawker Beechcraft plans to proceed with seeking confirmation of the Joint Plan of Reorganization it filed with U.S. Bankruptcy Court on June 30.

Superior Aviation Beijing is the company that bought Superior Air Parts out of bankruptcy in 2010. Its chairman is Cheng Shenzong, and its other holdings include Brantly International, Qingdao Brantly Investment Group, Weifang Freesky Aviation Industry and Qingdao Haili Helicopter Manufacturing.

Comments

HARRY MADDUX's picture

Another American Company selling out to China- Why did'nt Obama bail this company out ???? Watch that they use China engines and their goes Continental and Lycoming. As soon as they get the tecnology it will go to China and another empty factory in the USA. When will this country learn and start protecting our Industries??? China is already bulding Chevrolets and will build Airplanes too.
Nice going Washington!!!! You are selling out and you wonder why the job market is down. Its time you wake up in Washington and quit selling our oil , gas,coal and now our Heritage to foreighn countries.

Cliff Jenkins's picture

I don't disagree with your political views, but Continental and Lycoming don't provide the engines for the Hawker or the King Airs. Secondly, Hawker was actually a British company that a US Company purchased, and the Hawker 400 was originally manufactured by the Japanese. The King Airs, on the other hand, were most certainly a part of American legacy. I would have liked to see Cessna buy out the King Air line. No disrespect intended to Mr. Maddux's response.

Angelo Edelstein's picture

Stop seeing China as enemy!
China, Russia- are your business partners and they are not a threat to the world
IRAN is the threat and you need China and Russia to fight them

Gary Peters's picture

I am just disappointed with the sale of ANY American Company to any foregn nation.

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