Former Enstrom Helicopter Corporation Receives New Ownership
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- MidTex Aviation will operate the business through a new entity, Enstrom Aerospace Industries
- The new business will expand into engineering services, component manufacturing, and other aerospace projects including eVTOLs, military equipment and more
MidTex Aviation, LLC 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, Minnesota. The asset purchase agreement was approved by the United States Bankruptcy Court for the Western District of Michigan as part of The Enstrom Helicopter Corporation’s Chapter 7 bankruptcy process. Enstrom filed for bankruptcy this past January and closed doors officially on 21 January.
MidTex expects to operate through a new entity, to be named Enstrom Aerospace Industries. The new business will provide 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.
“This was just too good of an opportunity to pass up,” said Michael Dixon, Aviation Manager for MidTex. “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 eVTOLs, fixed wing, military equipment, and other advanced air mobility products,” said Dixon.
Kevin Griffin, MidTex’s Principal, said, “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.”
With the expected new ownership structure after closing the sale, the question for many customers shifts to when they can order parts and new aircraft. “Soon,” says Matt Francour, former President of Enstrom. “It’s going to take a little time to close the sale transaction, get the employees back, and get production ramped up. But, MidTex understands that the immediate priority is restoring support to the fleet.”
