Arcline Investment Management has entered into a definitive agreement to acquire the holding company of Continental Aerospace Technologies for approximately $535 million.

The transaction has been supported by irrevocable undertakings from the controlling shareholders, subsidiaries of Aviation Industry Corporation of China.

Founded in 1905 and headquartered in Mobile, Continental Aerospace Technologies designs and manufactures piston aircraft engines and provides aftermarket products and services for the general aviation sector.

The company produces both AvGas and Jet-A engines and supports a large global installed base of general aviation aircraft through its aftermarket activities.

Arcline says Continental's engineering capabilities, large installed base and reputation for reliability align with its aerospace and defence systems and subsystems strategy.

“Continental is a highly respected platform with a long history of engineering leadership, trusted customer relationships and mission-critical products that support the global general aviation fleet,” Arcline says. “The company's technical capabilities, large installed base and reputation for reliability fit naturally alongside our aerospace and defence systems and subsystems strategy. We look forward to partnering with Continental's management team and employees to support continued investment in the business and accelerate its next chapter of growth.”

J.P. Morgan Securities served as exclusive financial advisor to Arcline, while Freshfields acted as legal advisor.