MidTex to acquire and reopen Enstrom factory

MidTex Aviation has announced that it has entered into an asset purchase agreement to reopen the Enstrom Helicopter Corporation’s factory in Menominee, Michigan, after the company filed for bankruptcy in January of this year.

The agreement, which covers the acquisition of ‘substantially all assets’ of the former helicopter manufacturer, was approved by the United States Bankruptcy Court for the Western District of Michigan as part of the Chapter 7 bankruptcy process.

In addition to the factory, MidTex will acquire all former Enstrom parts, owned aircraft, tooling, materials, drawings, intellectual property, factory buildings and an airport lease.

MidTex plans to reopen the factory for operation through a new subsidiary entity, to be named Enstrom Aerospace, which the firm says ‘will provide parts and support to existing owners, as well as new helicopters’. The company also plans to ‘expand into providing engineering services and component manufacturing for other OEMs.’

MidTex has confirmed that it already has a number of former Enstrom employees working with them on a contract basis, and expects to make job offers to a substantial number of the firm’s former employees following the acquisition’s completion.

A great brand and an established customer base

“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,” said Michael Dixon, Aviation Manager for MidTex.  “Most people don’t realize that Enstrom was vertically integrated, building nearly 90 per cent of the helicopters under one roof.  They had the facilities to build almost anything.” 

“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 electric vertical take-off and landing aircraft (eVTOL), fixed-wing, military equipment, and other advanced air mobility products,” Dixon added.

Matt Francour, former President of Enstrom, said: “This was the best possible outcome.  There are a lot of Enstrom helicopter owners out there who have been holding their breath, and now they can breathe a sigh of relief.”  

The sentiment was echoed by Dennis Martin, former Director of Sales and Marketing for Enstrom, who said: “Not only will MidTex bring financial backing to operate the facilities and expand the business – it has a real vision for the future that goes beyond just building helicopters. MidTex plans to invest and grow the company in a meaningful way.”