Business

December 28, 2013

Beechcraft to be bought by Cessna parent company

Cessna Aircraft parent company Textron Inc. said Dec. 26 it will buy Beechcraft Corp. for approximately $1.4 billion, a deal that would combine two mainstays of Wichita’s general aviation industry.

The announcement by Providence, R.I.,-based Textron caps a year that saw Beechcraft emerge from bankruptcy largely freed from debt and its unprofitable Hawker business jet operations, which it stopped making to focus on turboprop and piston aircraft as well as trainers and light attack planes for the military.

Textron said it expects to complete the acquisition early next year.

“The acquisition of Beechcraft is a tremendous opportunity to extend our general aviation business,” Textron chairman and CEO Scott C. Donnelly said. “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.”

Donnelly said Beechcraft’s line of King Air turboprop planes “perfectly complements” Cessna’s Caravan and Citation jet lineup.

Beechcraft CEO Bill Boisture called the sale “an important step forward in the evolution of Beechcraft’s business.” He had said in recent months he expected the company would sell at least its idled business jet assets by the end of 2013.

“Textron’s experience in the industry and its willingness to invest in and maintain the iconic Beechcraft brand make it an ideal parent company, one that will help us continue to satisfy our customers and meet our business objectives at a faster pace,” he said.

In August, Beechcraft announced a nearly $1.4 billion order from Wheels Up, a New York-based private aviation membership company, to build up to 105 King Air 350i aircraft and to serve as Wheels Up’s North American maintenance provider. An industry expert called it the largest propeller aircraft order by value in general aviation history.

Beechcraft exited bankruptcy with roughly 5,400 employees worldwide, including about 3,300 at its headquarters. Boisture said in February that he anticipated those employment levels to remain stable.

Beechcraft has more than 36,000 aircraft in service and continues to support its Hawker business jets, according to the Textron news release.

Founded in Kansas in the 1930s, Beechcraft was bought by Canadian investment firm Onex Partners and Goldman Sachs Group Inc.’s private equity arm in 2007. The company struggled in the sluggish business jet market during the economic downturn that followed its purchase and filed in May 2012 for bankruptcy reorganization, from which it emerged Feb. 19.

Cessna Aircraft was founded in Wichita, Kansas, in 1927 and has built and delivered nearly 200,000 airplanes worldwide since then, including 6,500 Citation business jets, according to Textron. It also makes Caravan single-engine utility turboprops and single-engine piston aircraft, and provides aftermarket services including include parts, maintenance, inspection and repairs.

Too soon to say if Beechcraft faces cuts

The CEO of Textron Inc. says his aviation company’s $1.4 billion purchase of Beechcraft Corp. will require “restructuring and optimization of costs.”

But whether that means job cuts at Beechcraft’s home base in Kansas, or elsewhere, hasn’t been decided.

Textron is Cessna Aircraft’s parent company. It announced Dec. 26 that it was purchasing Wichita, Kansas,-based Beechcraft Corp. in a merger of big players in aviation.

Textron CEO Scott C. Donnelly acknowledged Friday that Beechcraft employees have been through a lot over the past few years and that the company’s bankruptcy created uncertainty for customers. But he says the merger provides great new brands to Textron’s portfolio.

The move caps a turbulent year for Beechcraft, which emerged from bankruptcy in February. Textron’s purchase is expected to close around the middle of 2014.




All of this week's top headlines to your email every Friday.


 
 

 

Headlines May 1, 2015

Business: Airbus says it will file criminal complaint over U.S. spy claims - European aviation and aeronautics giant Airbus said April 30 it would file a criminal complaint against persons unknown following German media reports it had become a target of U.S. industrial espionage. Finmeccanica outlines way ahead in U.K. market - Details have emerged about how...
 
 

News Briefs May 1, 2015

U.S. commander says NATO to step up its intelligence-sharing The top U.S. commander for NATO says the alliance will begin to improve intelligence-sharing with members and cooperation about the movement of foreign fighters from Iraq and Syria to the U.S. and other Western countries. Air Force Gen. Philip Breedlove says individual nations have been sharing...
 
 
Photograph by Linda KC Reynolds

A Million Makes a Difference

Presidential Lifetime Achievement Awards were presented to Lockheed Martin employees Richard Heinstedt and Jerry Dougherty, for serving more than 4,000 hours since 2003. Sherry Imil (center) received an honorable mention for vo...
 

 
Home-for-Good-logo

Coalition comes together to house area’s homeless vets

A coalition of Antelope Valley social service and community organizations has banded together with the ambitious goal of housing the area’s homeless veteran population by December 2015. The initiative, dubbed Home for Good, h...
 
 

Airbus profit up on Dassault sale but orders down

European planemaker Airbus says it has seen its profit jump in the first quarter thanks to the sale of a stake in rival Dassault Aviation, though its plane orders and deliveries fell slightly. Airbus reported net profit of 792 million euros ($871 million) in the first quarter, compared with 439 million euros a year earlier....
 
 
Air Force photograph by SSgt. DeNoris A. Mickle

‘Sentient data’ may one day augment Soldier capability

Air Force photograph by SSgt. DeNoris A. Mickle Air Force photograph by SSgt. DeNoris A. Mickle “Sentient data,” or information that can feel and perceive things, might one day protect Soldiers and their networks, s...
 




0 Comments


Be the first to comment!


Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>