Piaggio Aero Industries S.p.A., one of the world’s leading aerospace companies, today announced that Mubadala Development, a principal investment company wholly owned by the Government of Abu Dhabi, has acquired 35% of the equity of Piaggio Aero. 

The transaction is founded on a shared belief by the two parties that the business aviation segment will continue to expand significantly over the foreseeable future.  The share capital resulting from the deal positions Piaggio Aero to harness that opportunity.  Piaggio Aero Industries is the only company in the world to be active in all aspects of aircraft manufacture and maintenance – aircraft, aero-engines and aerostructures.  Since 1998, the company has grown its order book from one plane to its current order book of over 100 planes.  The Company’s total order book is currently valued at more than $820 million.

We are honoured that Mubadala Development has chosen to invest in Piaggio Aero.” Said Mr. Piero Ferrari, Chairman of Piaggio Aero S.p.A..  “We have had extraordinary success in both the European and North American business aviation markets.  This deal places us in a position to further grow our position in those markets whilst beginning to explore new markets, including the Middle East, Far East and South America - each of which offers high potential for sales.  Having known Mubadala for some time and seen their capabilities, we are convinced that they will be a very sound partner.  In short, this new strategic alliance between Piaggio Aero and Mubadala opens enormous possibilities for our business.” He added.

Commenting on the deal, Khaldoon Al Mubarak, CEO of Mubadala Development said: “For us this investment makes commercial sense on two levels.  As a straight investment opportunity Piaggio Aero has a remarkable performance track record.  Importantly, the transaction also offers the opportunity to explore potential synergies that both Piaggio and Mubadala can leverage." Meanwhile: “We are very excited about our new partner and honored for the confidence Mubadala has placed in Piaggio Aero” said Josè di Mase CEO of Piaggio Aero.
 

“For us this new partnership represents yet another significant development step.  We are heavily engaged in strategic planning for our industrial and commercial development and this new partnership allows us to build on our success of recent years through increased production and financial consolidation”.

Mubadala Development’s investment involves the purchase of existing shares and new shares.  Piaggio Aero’s primary shareholders are the Ferrari and di Mase families.  As a result of the transaction they will now hold 55% of the share capital of the Company.  Together with Mubadala’s 35% stake, this accounts for 90% of the share capital of the Company.  The other ten percent is held by a mixture of banks and other shareholders.
 
As part of the transaction, Mubadala will receive three Board seats of Piaggio, out of a total of seven, including the post of Vice-Chairman.  Mubadala will also receive one of the three seats on the Company’s Executive Management Committee.  Financial terms of the transaction were not disclosed.

“Mubadala Development is the best possible partner for Piaggio Aero.” Said Mr. Alberto Galassi,  a member of the Board of Directors and the Executive Committee of Piaggio Aero Industries.  “They are a highly sophisticated and selective investor and it is an honor for us to be a part of their development portfolio.  We look forward to what we know will be a proactive contribution to the Board and Executive Management Committee”. He added.

Piaggio Aero has shipped a combined total of almost 110 of its “Avanti” and “Avanti II” planes, to customers around the world.  Customers include private owners, corporations, governments, military institutions and fractional ownership companies.  In 2006, the Company plans to deliver 24 of its signature P180 Avanti II planes.  As Piaggio Aero’s flagship the P 180 Avanti II is the fastest and most efficient turboprop aircraft in the World, competing successfully in the light jet segment.

PIAGGIO AERO - HISTORY

The company was founded in Genoa in 1884, fitting out ocean liners and manufacturing rolling stock for the developing railway infrastructure at the turn of the century. This successful business led Rinaldo Piaggio to build a factory in 1906 in Final Marina, today the site of Piaggio Aero’s facility at Finale Ligure. The manufacture of aircraft and aircraft engines started in 1915 and 1925, respectively. Two engineers, Giovanni Pegna and Giuseppe Gabrielli, joined Piaggio in the 1920s and their arrival marked a turning point in the company’s history. They made a major contribution to the development of its aeronautic roots by pioneering innovative technical solutions for aviation. This period of the company’s history culminated in the design and build of the world’s first helicopter, an exceptional accomplishment for its time. 

In 1938 the 71 year-old Senator Rinaldo Piaggio died in Genoa, marking the end of an era. World War II destroyed the Company’s facilities, forcing Piaggio to reorganise the company: Rinaldo’s sons - Enrico, the inventor of the Vespa motor scooter, and Armando, supervised the recovery process. 

In 1948, Piaggio launched the P136, a twin-engine seaplane operated by the Italian Air Force to perform liaison and transport missions. In 1953, the P149 basic training aircraft reached a pinnacle of success when 265 units were ordered by the German Luftwaffe. And, in 1957 the P166 light transport aircraft was developed and produced for the military and civilian markets around the world. This aircraft is still in use by the Italian Air Force, Duardia di Finanza and Guardia Costiere. In 1960 Piaggio began manufacturing jet engines with the production, under license, of the Rolls Royce VIPER. This activity has subsequently been expanded into a significant proportion of the company’s current business. In 1966 Piaggio was separated into two independent companies, one focusing on the Vespa motor scooter and it’s developments, the other on aeronautical activities. Today the two companies are autonomous, sharing only the Piaggio name. 

The P180 project was the culmination of a ten-year research study which led to the 1990 certification of a new product for an emerging business aircraft market. The P180 Avanti was designed to offer jet performance at the cost of a turboprop. It proved to be a breakthrough in aerospace design that far exceeded the performance of its contemporaries with industry leading performance, passenger comfort and speed. In November 1998, the assets of Rinaldo Piaggio S.p.A. were acquired by a group of entrepreneurs headed by the Di Mase and Ferrari families and renamed Piaggio Aero Industries. Piaggio Aero Industries has once again been re-established as a world leader in the design and production of business aircraft.