Company "Surprised That Anyone Would Find That Surprising"

Citing "reports circulating" at last week's AirVenture 2007 show in Oshkosh, WI, the Aircraft Owners and Pilots Association reports Piper Aircraft may soon swap hands.

AOPA says American Capital Strategies -- the Maryland-based equity firm that has owned the storied planemaker for the past four years -- "may be shopping the company to prospective buyers."

As ANN reported, American Capital assumed ownership of Piper in 2003, after paying $34 million to assume the company's $57 million in bank debt. Combined with a further $20 million investment in the company, officials at the time said the company owned 94 percent of Piper.

In response to the AOPA report, on Monday Piper Aircraft spokesman Steve Johnston said the company does not comment on rumors or speculation... but fell short of denying an imminent sale.

"At any given time most companies are for sale at the right price, so we find it surprising that anyone would find that surprising," Johnston said. "As we have said many times before, Piper is and will continue to be for sale under the right circumstances."

Aerospace analyst Richard Aboulafia with the Teal Group told Florida's Treasure Coast Palm he wasn't surprised to hear the reports.

"This is what a private equity fund does," Aboulafia said. "They hold on to something for a couple years, fix it and then sell it."

The news comes as a resurgent Piper is shopping for locations for a plant to produce its upcoming single-engine PiperJet VLJ. In addition to the planemaker's current home in Vero Beach, FL, the company is also considering Albuquerque, NM and Oklahoma City for the plant, and possibly the company's corporate headquarters as well.

In something of a surprise move, Piper recently said it would not accept public financing being offered by Vero Beach and Indian River County, as part of a $76.5 million incentive package to keep Piper in Florida. The planemaker said it was best for the community to not move forward with the proposal, which was tied to a countywide referendum.

According to GAMA, Piper sold 61 aircraft in the second quarter of 2007, for revenues of an estimated $46.4 million. That builds on the 43 sales and $32.5 million in revenue reported in the first quarter.

Combined with Piper's partnership with Honda to assist in manufacturing the HondaJet, announced last year at AirVenture... and the Piper Aircraft of today is a far more attractive option for a purchaser than it was four years ago. Stay tuned.

FMI: www.piper.com, www.americancapital.com