Textron will acquire Beech Holdings, the parent of Beechcraft Corporation, in a $1.4 billion transaction.
The two companies issued statements about the deal one day after the Christmas holiday. Beechcraft says equity holders, sufficient to ensure the deal moves forward, have given their consent to the transaction, which is expected to close in the first half of 2014.
The deal brings two of general aviation’s most venerable brands, Cessna and Beechcraft, under one roof.
Textron, which estimates Beechcraft’s 2013 revenue at $1.8 billion, will partially finance the deal by issuing $1.1 billion in new debt. The deal will also see Textron repay Beechcraft’s working capital debt.
“The acquisition of Beechcraft is a tremendous opportunity to extend our general aviation business,” says Textron chairman and chief executive 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 [Beechcraft] 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.”