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Cirrus Dismisses ‘Counter Offer’ Speculation

Cirrus chairman Dale Klapmeier Pia Bergqvist
Gemini Sparkle

Key Takeaways:

  • Cirrus chairman Dale Klapmeier firmly denied any counter-bid from U.S. investors, stating that the Chinese buyout deal is the only one progressing.
  • The primary remaining hurdle for the deal is U.S. government approval, which Klapmeier expects to be secured for a summer closing, despite a congressman's call for a slower review.
  • Klapmeier confirmed that Cirrus aircraft production will remain in Duluth, Minnesota, with Chinese production only commencing to serve an emerging indigenous Chinese market.
  • The acquiring company, CAIGA, aims to increase Cirrus's profitability by bringing the Vision jet to market and expanding its product line with a full family of airplanes.
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Cirrus chairman and co-founder Dale Klapmeier this week sought to put an end to talk of a possible counter bid to a buyout deal from a Chinese aviation company. “There is no counter offer,” Klapmeier said at Sun ‘n Fun on Wednesday when asked about the news that a group of private U.S. investors led by market analyst Brian Foley was banding together to outbid China Aviation Industry General Aircraft (CAIGA) Co. for the assets of Cirrus.

Foley told Flying he has received commitments from investors for about half the money he needs to bid on Cirrus, which has a rumored selling price north of $200 million. Klapmeier’s response was incredulous. “We’ve talked with everyone in this industry who might be interested in buying Cirrus,” he said. “The chance that somebody who has never talked with the company could come in and bid for Cirrus at this stage is beyond remote.”

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