Australian company buys Hamilton plane maker

Alpha says their acquisition will herald a period of strong growth.

Hamilton-based aircraft manufacturer Alpha Aviation Ltd has agreed to sell to listed Australian firm Gregory Australia Ltd.

If the deal goes through, Gregory would seek dual listing on the New Zealand Stock Exchange and a collection of Alpha directors and shareholders would take 51 per cent control of Gregory.

Gregory's chairman is Alpha shareholder and managing director Richard Sealy.

Gregory Australia has interests in commercial furniture, electronics and health and aged care products.

Alpha's chairman Graeme Edwards said the deal was still subject to the execution of a share sale agreement, due diligence, regulatory approvals, and final approval by both boards.

But if it went ahead, Alpha would remain at Hamilton airport and Mr Sealy its managing director.

Export revenues and profits will also remain in New Zealand, Mr Edwards said.

He said the acquisition paved the way for Alpha's continued growth.

Alpha, which makes two-seater training aircraft, recently received certification to sell its planes and hopes to produce 70 aircraft a year.

Since the first plane came off the production line in April, Alpha has received 22 orders.

It estimates it will pump $75 million into the local economy over the next 10 years, excluding aircraft revenue.

Others with a common shareholding in both companies are Tony Noun, a director of both companies, Richard Izard, Graeme Edwards, Barry Colman, and John Birch.

- NZPA