Textron has completed its acquisition of Beechcraft by merging it with Cessna to form Textron Aviation, with the two brands to be retained.
In an announcement released on Friday, Textron Chairman Scott Donnelly said the successful merger created a powerful player in general aviation.
“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,” he said.
“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.”
Textron Aviation will boast a wide range of general aviation products including Citation and Hawker business jets, King Air twin-engine turboprops, Caravan single-engine turbo-props and the line-up of piston-engine aircraft from both the Cessna and Beechcraft stables.
The Beechcraft T-6 Texan trainer and AT-6 light attack aircraft will also fall under the new company.
Heading Textron Aviation will be Cessna boss Scott Earnest, who expects little trouble with integrating the two companies.
“We expect the integration of Beechcraft and Cessna to be a seamless process that continues putting our customers first,” he said.
“Textron Aviation not only encompasses a world-class 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 $US1.4 billion in cash. Textron financed the purchase of the equity as well as the repayment of Beechcraft’s working capital debt through a combination of available cash, the issuance of $US600 million in senior notes and drawing $US500 million under a new five-year term loan.
Last year, the combined revenue of Cessna and Beechcraft was $US4.6 billion.