Australian office chair producer Gregory Australia is purchasing New Zealand light aircraft manufacturer Alpha Aviation in an A$11 million ($8.3 million) deal.
The deal is expected to be completed through a share purchase on 1 February 2007. The two companies have a number of shareholders in common.
Hamilton-based Alpha Aviation purchased the manufacturing rights and equipment of French manufacturer Apex Aircraft Group in 2004 and transferred production of the all-metal trainers to New Zealand. Alpha acquired worldwide rights to the Robin R2160 and R2120 aircraft and assets, including manufacturing plant, jigs, tools, designs and civil aviation registrations for Australia, Europe and the USA.
The New Zealand manufacturer has renamed the aircraft the Alpha 2000 Series, with Alpha recently receiving New Zealand Civil Aviation Authority type certification for the Alpha 160A trainer.
Alpha has 21 firm orders and options for a further 14 aircraft, with the bulk of production capacity committed up to next March.
The manufacturer's shareholders have recently approved a NZ$3 million ($1.9 million) expansion of Alpha's Hamilton International airport-based facility to support an increase in production.
The site is capable of producing three to four aircraft a month, but demand is exceeding these capabilities, according to managing director Richard Sealy, who is also chairman of Gregory. Alpha's revised production target is eight aircraft a month, which will require a 30% expansion of the facility.
Source: Flight International
