FlightSafety International / Commercial Training Solutions

MN-50040

FlightSafety International Inc (**FSI**) proposes to acquire all of the shares in Horizon CTS Corp (**CTS**) (operating as Commercial Training Solutions) from Acron Technologies, LLC (**Acron**) (the **Acquisition**). FSI is headquartered in the US and is a wholly owned operating company of Berkshire Hathaway. FSI is a global supplier of aviation training, simulation products and related services. FSI provides advanced training and solutions for pilots, maintenance technicians, cabin attendants, and other aviation professionals. Additionally, FSI designs, engineers, manufactures, and supports flight simulation training devices (**FSTDs**), including full flight simulators (**FFS**) and lower-level flight training devices (**FTDs** - also referred to as fixed-base flight simulators) at multiple manufacturing facilities in the United States with a few training facilities in Europe and the Asia-Pacific region. FSI primarily focuses on the “business” or “private” aviation sector (being private air transport for companies and individuals, typically involving smaller aircraft). This includes the supply of aviation training and the manufacture of FFS for smaller jets of fewer than 100 seats, including light jets used in private aviation by corporations or private air transport operators, regional jets, and regional turboprop jets. FSI has a relatively limited offering in its production of training devices for the commercial aviation sector (being passenger aircraft used by airlines). In Australia, FSI has a training centre for aircraft maintenance services at Maroochydore in Queensland. FSI has also supplied FFS to customers in Australia, primarily for smaller jets. CTS primarily services the commercial aviation sector. CTS manufactures a range of FSTDs, including FFS, FTDs, flat panel trainers, driver training solutions, and supplies relevant training courseware and equipment upgrades, largely serving commercial airlines. CTS also provides flight training, and academy programs to commercial airlines and original equipment manufacturers (**OEMs**) (including to Australian airlines) through its facilities in the US, UK, and Thailand. CTS focuses on larger commercial aircraft, providing only limited products and services for smaller aircraft of less than 100 seats.