PROVIDENCE – Textron Inc. (NYSE: TXT) has reached a definitive agreement to sell its HR Textron control unit to Woodward Governor Co. in a $365 million all-cash deal.
An operating unit within the Textron Systems Corp. – which also includes AAI, Lycoming Engines, Overwatch Geospatial Systems, Overwatch Tactical Operations, Textron Defense Systems and Textron Marine & Land Systems – HR Textron generated $260 million in revenue last year. It is a supplier of actuation, stabilization and other systems and components for guided weapons, turbine engines, armored vehicles and aircraft, including turret-control and gun-stabilization systems for the M1 Abrams battle tank, as well as hydraulic and electric flight-control actuation systems for military and commercial helicopters, the F-35 Joint Strike Fighter, the X-45 unmanned combat air vehicle (UCAV) and air-launched weapons including the Joint Direct Attack Munition (JDAM) and AIM-9-X Sidewinder.
Woodward Governor, based in Fort Collins, Colo., is a supplier of systems for energy and motion control. Its acquisition of Textron Systems’ HR Textron unit is expected to close early in the second quarter, subject to regulatory approvals and other customary conditions.
“This transaction is an excellent value for Textron and Woodward,” Lewis B. Campbell, Textron’s chairman and CEO, said late Friday in announcing the sale. Moreover, he said, it “is consistent with Textron’s financial strategy and our defense and intelligence systems strategy within the Textron Systems segment.”
HR Textron was founded in Los Angeles in 1932, as a gun replacement-part maker called the Buchanan Manufacturing Co. Renamed Hydraulic Research & Manufacturing Co. in 1943, and acquired by Bell Helicopter Co. in 1954, it became part of the Textron family when the Providence-based company bought Bell Helicopter in 1960. In 1982, after two decades of operating as the Hydraulic Research division of Textron, it was reincorporated as a wholly-owned subsidiary called HR Textron Inc.
Seifert Systems Invests in Energy Efficiency to Strengthen Operations
For manufacturers, energy is more than just another operating expense. It plays a critical role…
Learn More
After a small gain generated by the sale, the transaction is expected to reduce Textron’s 2009 earnings by about 5 cents per share, the company said.
Textron Inc. (NYSE: TXT) is a $14.2 billion company employing 42,000 people in 28 countries. Its brands include Bell Helicopter, Cessna Aircraft Co., Jacobsen, Kautex, Lycoming, E-Z-GO and Greenlee, among others. Additional information is available at www.textron.com or www.HRTextron.com.
Woodward Governor Co., based in Fort Collins, Colo., is a manufacturer of fluid energy, combustion control, electrical energy and motion control systems for the global aerospace, power, process and transportation industries. Additional information is available at www.woodward.com.
