Get FinancingGulfstream Acquires NORDRAM Group
The manufacturing line that produces nacelles for the twin-engine Gulfstream 500 and G600 business jets now belongs to Gulfstream Aerospace. The company announced in early October that it acquired the line from NORDAM Group, which had produced the nacelles for Pratt & Whitney Canada, the engine supplier for both aircraft.
Bankruptcy Difficulties
Gulfstream has been operating the nacelle manufacturing line, located at NORDAM’s headquarters in Tulsa, Oklahoma, since early September. The arrangement is part of an agreement with NORDAM to address a bankruptcy filing NORDAM made in late July. NORDAM later filed an agreement in a Delaware court in September which allowed Gulfstream to restart the manufacturing line. The agreement includes the eventual transfer of the program’s assets to Gulfstream, which stated it won’t be disclosing additional details concerning the acquisition.
An article posted on NORDAM’s website states the company was facing roughly $286 million in outstanding funded debt before filing a voluntary petition in July for protection under Chapter 11 reorganization. Unexpected costs reportedly tied to the Gulfstream G500/G600 nacelle program led NORDAM to “spend more than $200 million on it,” a move that “materially jeopardized” profitability.
Up To The Task
Gulfstream President Mark Burns says his company’s 60-year history of manufacturing and “product excellence” will “serve our customers” as it takes over the nacelle production. “The manufacturing of this component is firmly in our wheelhouse, especially since we also manufacture the wings and empennages for these aircraft,” he says.
In addition the G500 and G600, Gulfstream manufacturers the G280, G550, G650, and G650 ER. You’ll find scores of new and used Gulfstream aircraft for sale on Controller.com.
Source: Gulfstream
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