China Aviation Industry General Aircraft Co (CAIGA) has recently signed a historic deal to acquire Cirrus Industries (Cirrus), the second-largest manufacturer of single general aviation aircraft in the world. Based in Minnesota, Cirrus has delivered nearly 5,000 piston-engine airplanes to 58 countries and regions over the past decade.
The deal is expected to close in mid-2011, but it is subject to approval from the US and Chinese governments. CAIGA has its headquarters in Zhuhai and announced the deal earlier this week. It is reported to be the first acquisition that a Chinese aviation company has made in the US and Europe, and is hoped to be a springboard for the Chinese firm to enter the US, the world's largest general aviation market.
Dewey & LeBoeuf’s Hong Kong legal team, including partner Paul Chen (pictured) and senior associate Wu Sheng, acted for CAIGA on the acquisition, while Beijing-based JiaYuan, led by Xu Ying, advised on the early stages of the transaction. Cirrus was represented by King & Spalding, led by Jay Harris in Atlanta.
Dewey’s Chen says the Chinese personal aircraft manufacturing industry will coninue to expand to meet demand from a growing affluent Chinese customer base, who will want access to private planes for both corporate and personal use. “I believe that Chinese personal aircraft manufacturers will be seeking more overseas acquisitions along the value chain to enter new markets, increase economies of scale and acquire new technologies,” he said. ALB
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