Cirrus Design Announces its Near 20% Stake in BRS

Cirrus Design has agreed to acquire warrants for up to 19.3% of Ballistic Recovery Systems (BRS), which makes the parachute system installed on the new Cirrus SR-20 aircraft. To receive the warrants, Cirrus must buy 1,150 BRS parachute systems over the next five years, business that is worth around $12 million to the St. Paul, MN-based company. Mark Thomas, BRS' president and chief executive, says the two companies have discussed the arrangement since August, 1998, and it could lead to Cirrus acquiring a larger stake in BRS later. Cirrus delivered its first two SR-20s in August, and claims a 356-order backlog for the single-engine, all-composite aircraft. BRS anticipates providing additional parachute systems to new Cirrus models as they develop.

NBAA 1999, Atlanta, Ga.