PROVIDENCE, R.I., Jan. 6 (UPI) -- Textron Inc. is expanding its aviation business with the purchase of all outstanding equity interests in Beech Holdings LLC.
Under an agreement reached late last month with Beech Holdings, parent company of aircraft manufacturer Beechcraft Corp., Textron is paying about $1.4 billion in cash for the equity.
"The acquisition of Beechcraft is a tremendous opportunity to extend our general aviation business," Textron Chairman and Chief Executive Officer 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.
"The iconic King Air product line perfectly complements our Caravan and Citation jet lineup and our combined global service network will deliver the superior level of services expected by our Cessna, Beechcraft and Hawker customers."
Beechcraft, in addition to King Air aircraft, also manufactures the T-6 trainer plane used by the U.S. and allied military forces. Its estimated revenues for 2013 is about $1.8 billion.
Textron said it plans to finance the purchase of the equity through a combination of available cash and as much as $1.1 billion in new debt. The transaction is expected to close during the first half of this year, subject to customary closing conditions and regulatory approvals.