Textron Inc. (Providence, R.I., USA) reports announced it has closed its acquisition of Beech Holdings LLC, the parent of Beechcraft Corp. (Wichita, Kan., USA), and that it will bring together its Cessna (Wichita, Kan.) aircraft 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. Textron says that 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,” says Textron chairman and CEO Scott Donnelly. “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 histories and respective strengths in the marketplace. Customers will also benefit from the industry’s largest global service network featuring companyowned, authorized and mobile service solutions. In addition, Textron Aviation will be home to the Beechcraft T6 trainer and AT6 light attack aircraft.
“We expect the integration of Beechcraft and Cessna to be a seamless process that continues putting our customers first,” says Ernest. “Textron Aviation not only encompasses a worldclass 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.blog comments powered by Disqus