Textron Agrees To Acquire Beech Holdings For $1.4 Bln.

(RTTNews) - Textron Inc (TXT) on Thursday agreed to acquire all outstanding equity interests in Beech Holdings LLC, the parent of Beechcraft Corp., for about $1.4 billion in cash.

Beechcraft Corp., with estimated 2013 revenues of $1.8 billion, is a manufacturer of business, special mission, light attack and trainer aircraft. With more than 36,000 aircraft in service, Beechcraft supports its installed base of Hawker business jets, King Air turboprops and Beechcraft airplanes with an extensive global network of company-owned and authorized service centers.

"The acquisition of Beechcraft is a tremendous opportunity to extend our general aviation business," said Textron Chairman and CEO Scott 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 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."

Textron plans to finance the purchase of the equity as well as cash required for the repayment of Beechcraft's working capital debt through a combination of available cash and up to $1.1 billion in new debt.

Holders representing equity interests in Beech Holdings sufficient to approve the transaction have delivered proxies authorizing written consents in favor of the transaction. The transaction is expected to close during the first half of next year, subject to customary closing conditions, including regulatory approvals.

J.P. Morgan served as exclusive financial adviser to Textron and is providing committed financing in connection with the acquisition.