Fairchild Aerospace is putting the final touches to a $350 million financial restructuring deal that will see its chairman and owner Carl Albert surrender control of the company to new investors led by New York investment house Clayton, Dubilier & Rice. Meanwhile, the European Commission has signed off $350 million worth of German federal and state guaranteed loans.
"A deal is expected to be done shortly-we're in the final stages of discussions," confirms Fairchild, but declines to reveal any details. An agreement between Albert and the new investors is expected to be announced within the month.
The deal would involve Clayton, Dubilier & Rice and at least one other new investor, thought to be European insurance company Allianz, buying the bulk of Albert's 56% holding in Fairchild. The US businessman is expected to retain a small stake, but will resign as chairman and chief executive.
Clayton, Dubilier & Rice traditionally does not manage companies, but instead puts in place targets to strengthen a company's value before selling.
Linked to the deal is $350 million of German bank loans for research and development. Germany's federal government has underwritten up to $270 million and the Bavarian state government another $80 million.
About 2,500 of Fairchild's 3,300 strong workforce is located in Germany.
Source: Flight International
