The Expectations Grow...

The GA industry has been agog, the last few days, at the news that Cessna's parent company, Textron, is reportedly bidding to purchase (at least) part of Columbia Aircraft. ANN broke the news several days ago on the sale of Columbia Aircraft actively being pursued... and that three parties were identified as having interest in taking over all or part of Columbia Aircraft.  

As we noted previously, each of the competitors has intriguing plans for their bids. At least one is reportedly interested more in the intellectual property and assets alone while one other bidder expressed an interest in operating the intact company and expanding its operations, presumably where it now operates in Bend, OR. Depending on the ultimate resolution to this matter, the Central Oregon employment picture stands poised to get a shot in the arm... or take a big hit, if the company is disassembled or moved.

At that time, ANN confirmed the identity of Textron, the parent organization overseeing the mighty GA manufacturer Cessna, as one of the interested parties. Back then, we explained the biggest news in the story at the time was the report that industry titan Cessna Aircraft was a part of the bidding process.

Textron/Cessna's plans for Columbia remained then unconfirmed (and still are -- the rumors are reaching a fever pitch) and company spokespersons have refused to "comment on speculation... as a matter of company policy." Industry insiders opined the Textron/Cessna involvement might be the most interesting aspect of the current scenario. One aero-insider noted (on background) that, "...it would seem unlikely that Textron would keep Columbia in Oregon, and if Cessna is the focal point of this action, then their labor agreements may even force them to bring everything back to Kansas.

Still, the biggest question is whether Textron would be interested in Columbia as a stand-alone company, as a part of Cessna itself, or as an asset acquisition that may (ultimately) result in the cessation of production in its current form. Regardless, the Textron/Cessna interest in this company has the potential to change the industry, dramatically."

OK.. that was then. We now know a LOT more about another major bidder in this process and their potential plans for the speedy aircraft builder. A team of potential purchasers, led by Aerospace Entrepreneur Granger Whitelaw (best known as the CEO of the Rocket Racing League), is in aggressive negotiation to acquire the entire Columbia company and associated assets.

When contacted, Whitelaw confirmed that he was involved in the aforementioned negotiations and that his plans were to "save Columbia from bankruptcy, operate the company where it stands in Bend (OR)... with the current workforce intact, and make this company the best in general aviation. I have a signed offer letter and funding in place to carry the company operations over for the next 45 days while we finish the structure to acquire the entire entity." Whitelaw has indicated that a number of his associates in his aerospace ventures are part of the team and that they have offered to guarantee transition funding over the process of the sale and want to execute an agreement "as soon as is possible."

Granger Whitelaw (pictured below) serves as President and Chief Executive Officer of the Rocket Racing League (Disclosure Note: ANN CEO/E-I-C Jim Campbell was named as one of four founding pilots in the RRL in 2004. He has NO financial interest in the Columbia project, however), overseeing the league's management, operations, partnerships and corporate affairs.

Whitelaw is the Founding Partner and Managing Director of BlueCar Partners, LLC, a global venture-consulting firm that provides capital, strategic consulting and business development services to promote the growth and success of innovative companies. Over the past 15 years, Mr. Whitelaw has led the firm in the launch and expansion of more than 20 companies, including the AMBER Development Group which supports the next-generation of the Amber Alert system, International Fuel Technology, a fuel science and research company, GPS Industries, creator of GPS-related sporting equipment, Kalorama Studios, a major motion picture and event site in Washington, D.C., TrendSphere, a think tank and consultancy for Fortune 500 Chief Technology Officers, and Vemics, creator of breakthrough collaboration technologies. Previously, Mr. Whitelaw served as Vice President of Mergers & Acquisitions at Grady & Hatch.

Whitelaw studied International Trade & Marketing at the University of Minnesota.

ANN STILL awaits word from a number of parties close to this story as to the final decisions of the Columbia Board... decisions which have been expected on a daily basis for the bhetter partr of a week. One Columbia insider, though, STILL predicts "an answer by NBAA (ANN Note: next week's Convention in Atlanta, GA), probably, but certainly by AOPA (ANN Note: the AOPA Expo this October 4th-6th).

ANN will keep you updated as developments occur.

FMI: www.flycolumbia.com