Enstrom rescued, with purchaser MidTex looking at new income streams
Helicopter manufacturer Enstrom has lived through its Chapter 7 bankruptcy proceedings. MidTex Aviation has announced that it has entered into an asset purchase agreement to acquire substantially all of the assets of The Enstrom Helicopter Corporation and plans to reopen the factory in Menominee, Michigan
MidTex principal Kevin Griffin said, “We are extremely excited about acquiring these assets, restarting the former Enstrom facility, and expanding the scope of the business. We already have a number of former Enstrom employees working with us on a contract basis. After closing, we expect to make job offers to a substantial number of former Enstrom employees.”
MidTex expects to operate through a new entity, to be named Enstrom Aerospace Industries. The new business will providee parts and support to existing owners, as well as new helicopters. In addition, the new company plans to expand into providing engineering services and component manufacturing for other OEM’s. Upon closing, MidTex will acquire all of the former Enstrom parts, owned aircraft, tooling, materials, drawings, intellectual property, factory buildings and airport lease.
Michael Dixon, Aviation Manager for MidTex was bullish for the future “Not only will we get a turn-key helicopter manufacturer with a great brand and an established customer base, we will also get an excellent springboard to launch an aerostructures and component manufacturing business. Most people don’t realize that Enstrom was vertically integrated, building nearly 90% of the helicopters under one roof. They had the facilities to build almost anything.”
Dixon is also excited about the company’s engineering capabilities. “Enstrom had a great relationship with the FAA, and a proven track record of getting certifications quickly and efficiently. Likewise, we look forward to working with the FAA to expand to other aerospace projects, including eVTOL’s, fixed wing, military equipment, and other advanced air mobility products,”