Textron completes Beechcraft acquisition
Textron Inc completes of the acquisition of Beech Holdings LLC and launches Textron Aviation.
Textron Inc has has closed the acquisition of Beech Holdings LLC, parent company of Beechcraft Corporation.
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Textron will bring together its Cessna business with Beechcraft and Hawker to form a new segment called Textron Aviation.
The three companies – which share a customer base of more than 250,000 aircraft – will remain as seperate brands.
Scott Ernest, who has served as Cessna’s president and CEO since 2011, will lead Textron Aviation segment as CEO.
“Today’s announcement is a historic milestone for the aviation industry and I congratulate the management teams of Beechcraft and Cessna for quickly bringing the merger to fruition,” said Scott Donnelly, chairman and CEO of Textron.
“Uniting these brands creates a robust industry competitor, operating as one team with a common goal to serve customers everywhere our aircraft fly. Through Textron Aviation, we now offer a broader selection of aircraft for our customers and a greatly expanded service footprint. Cessna, Beechcraft and Hawker owners will receive the high level of quality product and customer service that are the hallmarks of these brands — and our combined resources will enhance our ability to innovate and anticipate customer needs.”
Under the terms of the transaction, Textron purchased all outstanding equity interests in Beech Holdings for approximately $1.4 billion in cash.
Textron financed the purchase of the equity, as well as the repayment of Beechcraft’s working capital debt, through a combination of available cash, the issuance of $600 million in senior notes and drawing $500 million under a new five-year term loan.