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 October 17, 2014

News: Turkey OK’s American drones to fight ISIS - Turkey is now allowing the U.S. to launch unmanned aircraft to fly over Syria. But so far, traditional warplanes are out of the question. New Ingalls boss focusing on cost performance, agility - Brian Cuccias has been in the Gulf Coast shipbuilding business for 35 years, working for...
 
 

News Briefs October 17, 2014

AM General laying off 60 from Indiana factory A company spokesman says AM General is laying off about 60 workers from the northern Indiana factory where it builds military vehicles. Company spokesman Jeff Adams says the layoffs are being made because of production schedule changes at its Military Assembly Plant in Mishawaka. Adams tells the...
 
 
Image courtesy of NASA, J. Lotz, (STScI

NASA’s Hubble finds extremely distant galaxy through cosmic magnifying glass

Image courtesy of NASA, J. Lotz, (STScI The mammoth galaxy cluster Abell 2744 is so massive that its powerful gravity bends the light from galaxies far behind it, making these otherwise unseen background objects appear larger a...
 

 
Northrop Grumman photograph by Alan Radecki

Second Northrop Grumman-built Triton UAS completes first flight

Northrop Grumman photograph by Alan Radecki The second MQ-4C Triton, built by Northrop Grumman for the U.S. Navy, successfully completed its first flight Oct. 15 PALMDALE, Calif. – The U.S. Navy’s second MQ-4C Triton un...
 
 
NASA photograph

NASA TV to air Russian spacewalk from International Space Station

NASA photograph Expedition 41 Commander Max Suraev and Flight Engineer Alexander Samokutyaev of the Russian Federal Space Agency will don Orlan spacesuits and step outside the International Space Station Oct. 22, to perform wor...
 
 
Raytheon photograph

Poland’s PIT-RADWAR signs letter of intent with Raytheon

Raytheon photograph Mike Shaughnessy, Vice President of Supply Chain, Raytheon Integrated Defense Systems and Jerzy Milosz, Member of Board and Director of R&D, PIT-RADWAR sign a letter of intent to explore further partners...
 




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>