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Textron Inc

Textron Inc reached a deal to buy Beechcraft Corp. for $1.4 billion in December 2013. The Providence, Rhode Island-based company will purchase all outstanding equity interests in Beech Holdings LLC, the parent of Beechcraft, it said in a statement yesterday. The deal, which includes the repayment of Beechcraft’s working capital debt, will be financed by a combination of available cash and as much as $1.1 billion in new debt.

Adding Beechcraft models such as the twin-engine King Air will complement a Cessna lineup that ranges from two-seaters to the Caravan turboprop. That market segment is less competitive than private jets, where Cessna has struggled because it doesn’t build the large, long-range planes now favored by corporate buyers.

Textron will take over service for Hawker jets and hopes to convert those owners to Cessna jets, Donnelly said. The company is expecting low revenue from the T-6 military training plane as the U.S. military winds down it purchases and foreign sales of the plane would be a plus, he said.

Of the aircraft in service, 6,400 are King Airs and 2,250 are Hawker jets. The Beechcraft business was in good shape even with the bankruptcy and Textron wasn’t expected to invest extra to fix it.







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