The transaction announced Thursday night by Textron will enable the Providence, R.I.-based diversified firm to expand its general aviation division by adding Beechcraft's special mission, light attack and trainer aircraft to its portfolio. It will also bring Cessna and Beechcraft, both based in Wichita, under one corporate owner.
"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," Textron Chairman and CEO Scott Donnelly said in a formal statement announcing the agreement.
"I think it's an extremely good fit in terms of product," Donnelly added, referring to Beechcraft's popular King Air line of twin-engine aircraft and Cessna's Caravan and Citation jet lines during a Friday morning conference call with Wall Street analysts.
Beechcraft emerged from bankruptcy court protection this year after shedding much of its debt. Beechcraft CEO Bill Boisture had said in October that the sale of his company's legacy jet assets was close to completion.
In a statement announcing the acquisition deal, Boisture said Textron's experience and willingness to invest in Beechcraft "will help us continue to satisfy our customers and meet our business objectives at a faster pace."
Textron said Friday it would issue roughly $1.1 billion in new debt to finance the deal and provide working capital. However, the company expects to maintain its current debt ratings, Donnelly said.
Holders of equity interests in Beechcraft parent Beech Holdings have delivered sufficient proxies in favor of the transaction, Textron said. The deal, which is subject to regulatory approvals, is expected to close during the first half of 2014, the company said.
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