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 July 31, 2015

News: Carter: Military leaders could arm more troops at home – Following the recent fatal shooting of four Marines and a sailor in Tennessee, Defense Secretary Ash Carter is ordering the military services to consider new policies that would enhance security for troops at home, including potentially arming more personnel.   Business: DOD weighs supplier base,...
 
 

News Briefs July 31, 2015

U.S. delivering eight newer F-16 warplanes to Egypt The United States Embassy in Cairo says the U.S. is delivering eight newer F-16 warplanes to Egypt as part of an ongoing military support package. It says in a July 30 statement that the aircraft, of the current Block 52 production variant, will be flown in from...
 
 
Lockheed Martin photograph

Lockheed Martin successfully tests design changes for Orion spacecraft’s fairing separation system

Lockheed Martin photograph A protective panel for Orion’s service module is jettisoned during testing at Lockheed Martin’s Sunnyvale, California facility. This test series evaluated design changes to the spacecraft’s fair...
 

 

Australian company to provide parts for initial production of Triton UAS

Northrop Grumman has awarded the first Australian supplier contract for the U.S. Navy’s MQ-4C Triton unmanned aircraft system initial production lot to Ferra Engineering. Brisbane-based Ferra Engineering will manufacture mechanical sub-assemblies for the first four Triton air vehicles including structural components. “At Northrop Grumman it’s very important to not only develop...
 
 
Boeing photograph

CH-46 ‘Phrog’ makes its last hop

Boeing photograph The CH-46 Sea Knight helicopter commonly known as the “Phrog,” is set to retire and to be flown one last time by Reserve Marine Medium Helicopter Squadron (HMM) 774 on Aug. 1. The CH-46 Sea Knight is a med...
 
 

Insitu awarded LRIP Lot IV RQ-21A Blackjack Systems contract

Under the terms of its latest contract, Insitu will build six RQ-21A Blackjack systems for the U.S. Navy and Marine Corps. The $78-million Small Tactical Unmanned Aircraft Systems Lot IV Low Rate Initial Production contract is the latest event in the program’s progression toward the Initial Operational Test and Evaluation phase.   “This award will...
 




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=""> <s> <strike> <strong>