27 December 2013
Textron Inc (NYSE: TXT) said it has reached agreement to purchase all outstanding equity interests in Beech Holdings, LLC, the parent of Beechcraft Corp., for approximately USD1.4bn in cash.
Beechcraft, with estimated 2013 revenues of USD1.8bn, 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.
Textron said it 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 USD1.1bn 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.
Textron is a multi-industry company that leverages its global network of aircraft, defense, industrial and finance businesses to provide customers with innovative solutions and services. More information is available at www.textron.com.
Beechcraft designs, builds and supports versatile and globally renowned aircraft, including the King Air turboprops, piston-engine Baron and Bonanza, and the T-6 trainer and AT-6 light attack military aircraft. The company´s headquarters and major manufacturing facilities are located in Wichita, Kan. For more information, visit www.beechcraft.com.
Cessna is the world´s leading general aviation company. Since its inception in 1927, Cessna has designed, produced and delivered nearly 200,000 airplanes around the globe. The company´s website is at www.cessna.com.
Textron to buy Beechcraft
27 December 2013