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 27, 2015

News: U.S. Air Force certifies SpaceX for military launches - SpaceX has been certified for military space launch, the U.S. Air Force announced May 26. The long-awaited announcement is a game changer, with SpaceX becoming only the second provider cleared by the service to launch national security payloads into orbit.   Business: Northrop Grumman CEO issues...
 
 

New’s Briefs May 27, 2015

U.S. military begins search flights for stranded Rohingya The United States has begun military surveillance flights to help locate stranded Rohingya and Bangladeshi boat people in Southeast Asian seas. State Department spokesman Jeff Rathke said May 26 that U.S. Navy P8 aircraft flew over the weekend with Malaysian support. Rathke said the U.S. has offered...
 
 
nasa-commercial-crew

Commercial Crew milestones met; partners on track for 2017 missions

NASA has taken another step toward returning America’s ability to launch crew missions to the International Space Station from the United States in 2017. The Commercial Crew Program ordered its first crew rotation mission fro...
 

 
af-spacex

Air Force certifies SpaceX for national security space missions

Lt. Gen. Samuel Greaves, commander of the Air Force Space and Missile Systems Center and Air Force program executive officer for space, has announced the certification of Space Exploration Technologies Corporation’s Falco...
 
 

Northrop Grumman passes key design review for B-2 weapons management upgrade

Northrop Grumman has successfully demonstrated to the U.S. Air Force that its plans to upgrade key weapons management software for the B-2 stealth bomber are on track and ready to proceed to the next level of development. The company successfully completed the critical design review of the service’s Flexible Strike Phase 1 program on Feb...
 
 
boeing-space

Boeing awarded first-ever commercial human spaceflight mission

NASA issued a task order as part of Boeing’s $4.2 billion Commercial Crew Transportation Capability contract recently to include the company’s first-ever service flight to the International Space Station. The award ...
 




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>