Baykar Technolgies’ acquisition of Italian airframer Piaggio Aerospace is likely to conclude towards the middle of April, with preliminary contracts due to be signed in the coming weeks, FlightGlobal understands.
Turkish unmanned systems specialist Baykar emerged as Piaggio’s buyer in late December, which, if the deal concludes successfully, will end the Italian company’s six years in extraordinary administration.
When the acquisition was announced, no timeline for its completion was disclosed. But industry sources say the purchase of the business and assets of the two companies – Piaggio Aero Industries and Piaggio Aviation – should be finalised by “Easter-time”, this year falling on 20 April. Meanwhile, the preliminary contracts for the purchase should be signed by the end of January.
However, there are many external factors that could influence the exact timing, notably receiving approval from the Italian government under the so-called ‘Golden Power’ law which grants it a veto over sales of strategic assets to foreign companies.
Baykar was selected as the preferred bidder for Piaggio by the Italian Ministry of Business and Made in Italy on 27 December, beating offers from two rival contenders.
No details of the other bidders have been revealed, although Italian media outlet Il Sole 24 Ore identifies them as Saudi Arabian investment firm alNimr alArabi and Brazilian maintenance specialist Hbr Aviacao.
How much Baykar is paying for Piaggio also remains a closely-guarded secret, although FlightGlobal understands it is below €100 million ($103 million).
Piaggio has been in extraordinary administration – an Italian business rehabilitation process – since December 2018 when the UAE’s Mubadala, its majority shareholder, withdrew support. During that period it has been run by three commissioners charged with turning around the business and seeking a new owner – a process that has repeatedly faltered.
Little is known about Baykar’s plans for Piaggio, which has an extensive maintenance and repair business with several contracts with the Italian armed forces, an engine component manufacturing operation, and production of the iconic P180 Avanti twin-turboprop.
Last year, Piaggio delivered a total of four new P180s – all in the latest Evo+ standard – to the Italian air force. A further 11 units are on order for the country’s armed forces.
