Textron's purchase of Beechcraft has been officially confirmed.
In an announcement released on Boxing Day, Beechcraft confirmed that Textron has paid $US 1.4 billion in cash for its parent company, Beech Holdings, LLC.
“This transaction represents an important step forward in the evolution of Beechcraft’s business," said Beechcraft CEO, Bill Boisture. "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.”
The buy-out is subject to approval by US regulators and includes a clause that allows Beechcraft to evaluate alternate proposals from other suitors if they are superior to Textron's. In that case, Beechcraft would pay Textron a $US 48 million termination fee.
Textron now owns a large portion of the general aviation market, adding Beechcraft to a portfolio that already included Cessna, Bell Helicopters, Lycoming and flight sim companies Mechtronix and OPINICUS. US regulators may consider that Textron would have too much market power in general aviation.