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By PBN Staff
By PBN Staff
PROVIDENCE – Textron Inc. on Friday completed the acquisition of Beech Holdings LLC, parent company of Witchita, Kan.-based planemaker Beechcraft Corp., to augment its lineup of Cessna aircraft.
Under the terms of the acquisition, Textron purchased all outstanding equity interests in Beech Holdings for approximately $1.4 billion in cash, financed 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, the company said.
Textron’s Cessna business and Beechcraft will form a new segment within the company called Textron Aviation. Scott Ernest, who has served as Cessna’s president and CEO since 2011, will lead the Textron Aviation segment as CEO.
Last year, Cessna and Beechcraft together produced about $4.6 billion in revenue, Textron said.
“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.”
Cessna, Beechcraft and Beechcraft’s line of Hawker business jets will each remain distinct brands following the acquisition, Textron said. The three brands bring more than 200 years of combined aviation experience to the market and a customer base of more than 250,000 airplanes worldwide.
“We expect the integration of Beechcraft and Cessna to be a seamless process that continues putting our customers first,” said Ernest. “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.”