|[December 26, 2013]
Textron to Acquire Beechcraft-Significantly Expands General Aviation Business with Addition of Beechcraft Products and Services
PROVIDENCE, R.I. --(Business Wire)--
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.
"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.
Textron will host conference call Friday, December 27, 2013 at 8:30
a.m. (Eastern) to discuss the Beech Holdings acquisition. The call will
be available via webcast at www.textron.com
or by direct dial at (877) 260-8900 in the U.S. or (612) 332-1210
outside of the U.S. (request the Textron Conference Call). Replay of the
call is scheduled to begin on December 27 at 10:30 a.m. (Eastern), and
is accessible by calling (320) 365-3844, Access Code 314378.
About Textron Inc.
Textron Inc. 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. Textron is
known around the world for its powerful brands such as Bell Helicopter,
Cessna Aircraft Company, Jacobsen, Kautex, Lycoming, E-Z-GO, Greenlee,
and Textron Systems. 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.
Its 5,400 highly skilled employees are focused on continuously improving
the company's products and services which are sold to individuals,
businesses and governments worldwide. In business since 1932, Beechcraft
has built more than 54,000 aircraft and more than 36,000 continue flying
today. It leads the industry with a global network of more than 90
factory-owned and authorized service centers. 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. This includes 6,500 Citation
business jets, making it the largest fleet of business jets in the
world. Today, Cessna has two principal lines of business: aircraft sales
and aftermarket services. Aircraft sales include Citation business jets,
Caravan single-engine utility turboprops, single-engine piston aircraft
and lift solutions by CitationAir. Aftermarket services include parts,
maintenance, inspection and repair services. In 2012, Cessna delivered
571 aircraft, including 181 Citation business jets, and reported
revenues of $3.111 billion. More information about Cessna Aircraft
Company is available at www.cessna.com.
Certain statements in this press release may project revenues or
describe strategies, goals, outlook or other non-historical matters;
these forward-looking statements speak only as of the date on which they
are made, and we undertake no obligation to update them. These
statements are subject to known and unknown risks, uncertainties, and
other factors that may cause our actual results to differ materially
from those expressed or implied by such forward-looking statements,
including, but not limited to, the occurrence of any event, change or
other circumstance that could give rise to the termination of the merger
agreement; the inability to complete the transaction due to the failure
to receive required regulatory or other approvals or to satisfy other
conditions; difficulties or unanticipated expenses in connection
with the consummation of the acquisition; the risk that the transaction
disrupts current plans and operations; difficulty or unanticipated
expenses in connection with integrating Beech into Textron; the risk
that the acquisition does not perform as planned, including the risk
that Beech will not achieve revenue projections; the failure to achieve
anticipated synergies and opportunities; and potential difficulties in
employee retention following the closing of the transaction.
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