MidTex Aviation plans to relaunch Enstrom

MidTex Aviation  has agreed to buy the assets of The Enstrom Helicopter Corporation and plans to reopen its factory. The purchase has been approved by the United States Bankruptcy Court for the Western District of Michigan as part of Enstrom’s Chapter 7 bankruptcy process.

The buyer is backed by a group of aviation entrepreneurs. MidTex Aviation also owns a corporate jet fleet management company, pilot management and a helicopter surveying business.

“We are extremely excited about acquiring these assets, restarting the former Enstrom facility, and expanding the scope of the business.  We already have a number of former Enstrom employees working with us on a contract basis,” said Kevin Griffin, MidTex’s Principal. “After closing, we expect to make job offers to a substantial number of former Enstrom employees.”  

Several of the MidTex team worked at Enstrom in the past. Haynes and Boon advised MidTex sale.

The new company will be called Enstrom Aerospace Industries. As well as manufacturing and supporting Enstrom helicopters it also plans to make parts for other helicopter and electric vertical aircraft manufacturers.

Enstrom has a fleet of around 800 aircraft.

“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.  Enstrom was vertically integrated, building nearly 90% of the helicopters under one roof. They had the facilities to build almost anything.” 

MidTex hopes to close the purchase by the end of April. Haynes and Boone Dallas advised MidTex.