The new Textron unit is Textron aviation, which combines its Cessna aircraft business and Beechcraft and Hawker aircraft products.
Textron Chairman and Chief Executive Officer Scott Donnelly called the deal an historic milestone.
"Uniting these brands creates a robust industry competitor, operating as one team with a common goal to serve customers everywhere our aircraft fly," he said. "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 bought all outstanding equity interests in Beech Holdings for about $1.4 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 $600 million in senior notes and drawing $500 million under a new five-year term loan.