Story ID: 
Setouchi Sells Small Stake in Quest Aircraft
By: Kerry Lynch
Caption: Quest hopes to leverage relationships of new investor to expand global reach.
Word Count: 325
Japanese conglomerate Mitsui & Co. signed an agreement with Quest Aircraft parent company Setouchi Holdings to acquire an equity stake in the Sandpoint, Idaho-based manufacturer of the Kodiak single-turboprop aircraft. Under the agreement, which was finalized January 13, Mitsui is receiving a 12.5-percent holding of Quest for a $10 million investment, according to Mitsui. The investment comes nearly a year after Setouchi Holdings bought Quest Aircraft, furthering a relationship that began when Setouchi became a Quest dealer.

As with Setouchi, Quest hopes to leverage Mitsui’s industry relationships to extend its global reach. “The agreement between Setouchi Holdings and Mitsui will help us further expand Quest’s market globally for the Kodiak,” said Quest Aircraft CEO Sam Hill. “They, like Setouchi, are a well respected company with worldwide business interests in a variety of market segments.”

Mitsui is involved in manufacturing, infrastructure, services, financing and/or marketing of a number of industries, including iron/steel, chemicals, minerals infrastructure projects, transportation systems, energy, food resources/products and IT, among others.

“Mitsui will, with its capital participation in Quest, use its global networks to support the expansion of sales channels for the Kodiak 100 in previously uncultivated markets with the potential for demand growth and work to further enhance Quest's corporate value,” Mitsui said in a statement.

“The Kodiak is well suited to a wide variety of missions and we want to further build on our global market penetration,” Hill said. Quest recently added a dealer in Chile and is working on a number of new international certifications for the aircraft in addition to the 21 approvals it has already obtained. The company also has been expanding its facilities. It began construction this fall of a 75,000-sq-ft expansion of its Sandpoint facilities that will effectively double its production space. The expansion will help Quest continue to increase production of the Kodiak as demand for the aircraft continues to increase, Hill said.