Teledyne sells aviation piston engine business to Technify Motor to expand internationally

[News_Editor]

Teledyne sells aviation piston engine business to Technify Motor to expand internationally

2010-12-15 10:21:33 GMT+7 (ICT)

THOUSAND OAKS, CALIFORNIA (BNO NEWS) -- Teledyne Technologies Incorporated and AVIC International Holding Corporation on Tuesday announced an agreement to sell Teledyne's general aviation piston engine business to Technify Motor (USA) LTD., a subsidiary of AVIC International, for $186 million in cash.

Headquartered in Mobile, Alabama, Continental Motors is a leading manufacturer of FAA-certified piston engines, as well as spare parts and components that are used in small propeller-driven general aviation aircraft around the world.

Continental Motors employs approximately 400 workers in Mobile and has been a highly reliable manufacturer of commercial aircraft piston engines for more than 80 years. Continental Motors also maintains service centers in Fairhope, Alabama and Mattituck, New York.

With major customers such as Boeing, Airbus, Honeywell and Snecma, AVIC International is a trusted supplier and partner of leading aviation companies in the U.S. and around the world.

The transaction will enhance the ability of Continental Motors to compete globally, especially in growing overseas markets such as China. Today, Continental Motors' primary markets are the U.S. and Europe. But China opens one of the world's largest potential markets for general aviation aircraft due to its growing population, large geographical area and expanding infrastructure.

Compared to 230,000 general aviation aircraft in the United States, China has only 900 small aircraft operating in the country. But that number is expected to grow fast over the next decade, raising demand for FAA-certified piston engines.

Under the transaction, AVIC International will acquire Teledyne Continental Motors, Inc. and Teledyne Mattituck Services, Inc. The transaction is expected to close in the first quarter of 2011.

-- © BNO News All rights reserved 2010-12-15