Providence, R.I. – Textron Inc. officials announced March 14, 2014, that the company has closed its acquisition of Beech Holdings LLC, the parent of Beechcraft Corp., and that it will bring together its Cessna business and Beechcraft to form a new segment called Textron Aviation. Cessna and Beechcraft together produced about $4.6 billion in revenues during 2013.
The acquisition brings together three iconic brands, each pioneering many of general aviation’s most notable advances in the past century. Cessna, Beechcraft, and Hawker bring 200-plus years of combined aviation experience to the market and an installed customer base of more than 250,000 airplanes worldwide. Going forward, Textron Aviation intends to share and leverage best practices across all operations to further its position as an aviation authority. Scott Ernest, who has served as Cessna’s President and CEO since 2011, will lead the 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 Textron Chairman and CEO Scott Donnelly. “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.”
Cessna, Beechcraft, and Hawker will each remain distinct brands to preserve their rich histories and respective strengths in the marketplace. Textron Aviation brings together a unique combination of businesses with complementary general aviation products including Citation and Hawker business jets, King Air twin-engine turboprops, Caravan single-engine utility turboprops, and piston-engine aircraft representing the Cessna and Beechcraft brands. Customers will also benefit from the global service network featuring company-owned, authorized, and mobile service solutions. In addition, Textron Aviation will be home to the Beechcraft T-6 trainer and AT-6 light attack aircraft.
“We expect the integration of Beechcraft and Cessna to be a seamless process that continues putting our customers first,” said Scott Ernest, Textron Aviation CEO. “Textron Aviation not only encompasses a world-class global customer service network and a strong portfolio of business and general aviation aircraft, but also a workforce with unparalleled industry expertise.”
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.
Textron officials announced the company had agreed to acquire Beech Holdings on Dec. 26, 2013.
Source: Textron Inc.
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