in Business Aviation / Business & Finance

Textron completes acquisition of Beechcraft

Posted 14 March 2014 · Add Comment

Textron Inc. today announced it has closed its acquisition of Beech Holdings, LLC, the parent of Beechcraft Corporation, 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 (right). “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 class-leading, complementary general aviation products including Citation and Hawker business jets, King Air twin-engine turboprops, Caravan single-engine utility turboprops and a great line up of piston-engine aircraft representing the Cessna and Beechcraft brands. Customers will also benefit from the industry’s largest global service network featuring company-owned, authorised 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.

 

* required field

Post a comment

Other Stories
Advertisement
Latest News

Etihad Aviation Group and Emirates Red Crescent support group travelling for Umrah as part of 'Year

Etihad Aviation Group (EAG) has taken part in an exciting philanthropic collaboration with Emirates Red Crescent, to support a group of 15 travellers in experiencing the holy pilgrimage of Umrah.

Family fortunes...

South African Express (SAX) and South African Airways (SAA) may be separate companies, but their corporate identities and destinies are closely intertwined. As Victoria Moores found out, both companies are battling a stagnant market

UAE Space Agency and Algerian Space Agency strengthen ties

The UAE Space Agency has signed a Memorandum of Understanding with its Algerian counterpart the Algerian Space Agency.

Boeing reports first-quarter results

The Boeing Company reported higher first-quarter earnings and operating cash flow compared to the previous year, driven by solid execution on production programmes and services.

Botswana terminal takes next step towards 2020 vision

The Government of Botswana says the construction of a temporary terminal building at Maun International Airport will be completed in May this year, although the rest of the infrastructure expansion project is due to be completed in

A new way to Scout out web booking

An innovative new charter sales platform, Jet Scout, has been introduced to the African and Middle East market. Vincent Chappard finds out why it is receiving a positive reaction.

EBACE17 SK0103240517
See us at
Aviation Festival BT25114617EBACE17 BT0103240517GroundHandling BT0303280917