Boeing completes sale of commercial helicopter line
Boeing completed sale of the MD500E, MD530F, MD520N, MD600N and the MD Explorer series to dutch RDM Holding Inc. These helicopters were acquired by Boeing when bought McDonnell Douglas Corp in 1997
Helis, February 19, 1999 - SEATTLE, WA - Boeing completed the long delayed sale of commercial helicopter product lines it acquired when it bought McDonnell Douglas Corp in 1997
McDonnell Douglas Helicopter Co was sold to a subsidiary of RDM Holding Inc, a Dutch-based military and industrial concern that makes submarines and tanks, among other businesses.
The price was not disclosed, although the asset value was about $150 million, said Joep Van Den Nieuwenhuyzen, chairman and owner of RDM.
Including service and spare parts, the helicopter unit generated sales of slightly over $100 million last year, a Boeing spokesman said, just a tiny fraction of the aerospace giant's $56 billion in revenues.
The sale includes five helicopter models including two with Boeing's NOTAR (no tail rotor) system and the MD Explorer twin-engine version. In an interview Van Den Nieuwenhuyzen said he hoped to double the company's production of three helicopters a month over the next 18 months.
About 250 people are directly employed by the helicopter unit, which will keep its headquarters in Mesa, Arizona, USA. Boeing announced its intention to divest the helicopter assets more than a year ago, but an initial planned sale to Textron Inc. fell through after the Federal Trade Commission raised unspecified concerns.
The sale does not include Boeing's far bigger line of military helicopters.
Boeing Completes Sale of Light Helicopter Product Lines to RDM
Boeing - MESA, AZ - McDonnell Douglas Helicopter Company, an indirect subsidiary of The Boeing Company , and MD Helicopters Holding, Inc., an indirect subsidiary of RDM Holding, Inc., have completed an agreement on an asset purchase of the Boeing MD 500, MD 600N and MD Explorer series of light commercial helicopter product lines.
The sale, which has been approved by the U.S. Federal Trade Commission, was finalized today. The sale price was not disclosed. MD Helicopters will make its public debut on Sunday, Feb. 21, in Dallas during Heli-Expo '99, the rotorcraft industry's largest annual gathering.
MD Helicopters is operating initially from existing Boeing facilities at Mesa's Falcon Field Airport.
The company said it would construct new local facilities at a later date. Boeing will provide technical and engineering support under contract to MD Helicopters.
RDM, an industrial company with aerospace activities, also builds submarines and other defense vehicles. It is a subcontractor to Boeing for landing gear and fuselage assemblies for Apache helicopters.
Included in the sale are the MD 500E and MD 530F single-engine helicopters with conventional tail rotors, the MD 520N and MD 600N single-engine helicopters with the Boeing exclusive NOTAR no tail rotor system for anti-torque and directional control, and the MD Explorer series of twin-engine, eight-place helicopters.
Boeing will retain ownership of NOTAR technology, but MD Helicopters will have a license to use the technology on existing and future aircraft. NOTAR system-equipped helicopters are the quietest and safest helicopters ever produced.
MD Helicopters will continue to produce the single- and twin-engine helicopters in Mesa and will assume responsibility for delivery of aircraft currently on order.
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