TEXTRON CONFIRMS BEECHCRAFT BUY-OUT

22 Dec 2013

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Textron, the parent company of Cessna Aircraft and Bell Helicopters, has confirmed it is buying Beechcraft for $1.4 billion.

Textron boss Scott Donnelly said, “The acquisition of Beechcraft is a tremendous opportunity to extend our general aviation business. 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 [Beechcraft] 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,” he continued.

Beechcraft has estimated 2013 revenues of $1.8 billion and 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 aircraft with an extensive global network of company-owned and authorised service centres.

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. The transaction is expected to close during the first half of next year, subject to customary closing conditions, including regulatory approvals.

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