Fairchild Aerospace has been acquired by an investment alliance in a deal worth $1.2 billion, it was announced on December 28. \rAn investment fund managed by Clayton, Dubilier and Rice (CD&R), and Allianz Capital Partners (ACP), has funded the buyout of Fairchild, which is the parent company of Dornier Luftfahrt GmbH. The deal includes an injection of $400 million in growth capital and debt financing of $800 million from a consortium of German banks and other institutions.\rAll approvals for CD&R and ACP investments have been obtained. The participation of the various banks is subject to approval from their respective regulatory boards. The transaction is also subject to review by regulatory authorities in the European Union and the United States. The deal is expected to close early in the first quarter of 2000. \rCharles P. Pieper, a principal of CD&R, will become chairman and ceo of Fairchild/Dornier, succeeding Carl Albert, who will remain on the board of directors. Prior to joining CD&R, Pieper was a senior executive at General Electric for 16 years. "Fairchild/Dornier is a very sound company with a skilled and dedicated group of employees and a solid business plan," said Pieper. "A valuable asset is the strong relation-ships the company has developed with its customers and suppliers."\r"This investment of growth capital demonstrates the constructive role private equity can play in the world economy to support promising corporate expansion programmes ," said Joseph L. Rice III, chairman of CD&R. "Fairchild/Dornier will be well positioned to execute its long term growth strategy."\rAt the end of 1999, Fairchild/Dornier had a backlog of more than 400 orders and options, valued at nearly $8 billion. Lufthansa has 60 orders/ 60 options for 728JETs; Atlantic Coast Airlines has 55 orders/ 55 options for a mixture of 328JETs and 428JETs; Atlantic Coast Jet has an additional 25 orders/ 30 options for a mixed 328JET/ 428JET fleet, for use as a Delta connection; and Flight Options, US based fractional ownership company, has ordered 25 Envoy 7 corporate aircraft. Fairchild claims to have garnered one-third of the orders made by airlines for passenger jets under 100 seats.