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Textron to acquire Beech Holdings

Beechcraft Corporation announced today that Textron Inc. has agreed to acquire Beech Holdings, LLC, the parent of Beechcraft Corporation, for approximately $1.4 billion in cash.

Bill Boisture, CEO of Beechcraft, said: “This transaction represents an important step forward in the evolution of Beechcraft's business. The team at Beechcraft has worked tirelessly to strengthen our core business and to maintain our position as a leader in a highly competitive environment. 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.”

Since its emergence from Chapter 11 protection in February 2013, the market has responded positively to the new Beechcraft Corporation. The company's strong aircraft delivery numbers in the first three quarters of this year and the securing of its highest booking rates in the past three years are evidence of Beechcraft's renewed growth in the market.

Under the terms of the transaction, Textron will acquire the Hawker 4000 and Premier IA type certificates. Maintenance services for the aircraft will continue through Beechcraft's factory-owned service center network, Hawker Beechcraft Services, and Authorized Service Centers around the world with Hawker 4000 and Premier ratings. Beechcraft will continue to provide uninterrupted service and support for all Hawker 4000 and Premier aircraft.

Holders representing equity interests in Beech Holdings sufficient to approve the transaction have delivered proxies authorizing written consents in favor of the transaction. The transaction was unanimously supported by Beechcraft's board of directors and is expected to close during the first half of 2014, subject to customary closing conditions including regulatory approvals. The definitive agreement includes a customary no-shop provision with exceptions permitting Beech Holdings to respond to, evaluate and, under certain circumstances, accept an unsolicited proposal that is superior to the transaction with Textron, in which case a termination fee of $48 million will be payable by Beech Holdings to Textron.

Credit Suisse acted as lead financial advisor to Beech Holdings on the transaction and Morgan Stanley also served as a financial advisor. Kirkland & Ellis LLP served as legal advisor to Beech Holdings on the transaction.

Press release issued by Beechcraft Corporation on December 26, 2013


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