Textron to Acquire Beechcraft
- Significantly Expands General Aviation Business with Addition of Beechcraft Products and Services
Textron Inc (NYSE: TXT) today announced that it has reached agreement to purchase all outstanding equity interests in Beech Holdings, LLC, the parent of Beechcraft Corporation, for approximately $1.4 billion in cash.
Beechcraft Corporation, with estimated 2013 revenues of $1.8 billion, is a leading manufacturer of business, special mission, light attack and trainer aircraft. With more than 36,000 aircraft in service, Beechcraft supports its installed base of Hawker business jets, King Air turboprops and Beechcraft airplanes with an extensive global network of company-owned and authorized service centers.
Global Counter Unmanned Aerial Vehicle Defense System Industry 2016 Market Research Report
“The acquisition of Beechcraft is a tremendous opportunity to extend our general aviation business,” said Textron Chairman and CEO Scott C. Donnelly. “From our customers’ perspective, this creates a broader selection of aircraft and a larger service footprint— all sharing the same high standards of quality and innovation. The iconic King Air product line perfectly complements our Caravan and Citation jet line-up and our combined global service network will deliver the superior level of services expected by our Cessna, Beechcraft and Hawker customers.”
Bill Boisture, CEO of Beechcraft, said “This transaction represents an important step forward in the evolution of Beechcraft’s business. The team at Beechcraft has worked tirelessly to strengthen our core business and to maintain our position as a leader in a highly competitive environment. Textron’s experience in the industry and its willingness to invest in and maintain the iconic Beechcraft brand make it an ideal parent company, one that will help us continue to satisfy our customers and meet our business objectives at a faster pace.”
Textron plans to finance the purchase of the equity as well as cash required for the repayment of Beechcraft’s working capital debt through a combination of available cash and up to $1.1 billion in new debt. Holders representing equity interests in Beech Holdings sufficient to approve the transaction have delivered proxies authorizing written consents in favor of the transaction. The transaction is expected to close during the first half of next year, subject to customary closing conditions, including regulatory approvals.
J.P. Morgan served as exclusive financial adviser to Textron and is providing committed financing in connection with the acquisition.
Your company’s press release on ASDNews and to thousands of other journalists and editors? Use our ASDWire press release distribution service.
Source : Textron
Dec 5 - 8, 2016 - Miami, United States
Jun 6, 2016 - Amsterdam, Netherlands
Jun 20 - 22, 2016 - Washington, United States