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Textron to buy Beechcraft for $1.4 billion [December 28, 2013] (Reuters) — Textron Inc <TXT.N>, maker of Cessna planes, said it will buy aircraft maker Beechcraft Corp for about $1.4 billion in cash, in a deal that sees Textron expand its aviation business. |
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Shares of Textron were up about 3 percent in
extended trading after the announcement of the deal. Beechcraft emerged from bankruptcy protection in February and
was seeking buyers for its jet plane business which has been
losing money. Textron, which also makes the Bell helicopter, said it plans to
finance the deal through a combination of available cash and up
to $1.1 billion in new debt. The deal is one of the largest after a U.S. budget agreement
that experts say could set off the most robust series of mergers
and acquisitions in the aerospace and defense sector in years. In case Beechcraft is able to find a higher bidder, it will be
liable to pay a termination fee of $48 million to Textron,
Beechcraft said in a statement. Credit Suisse and Morgan Stanley acted as financial advisors to
Beech Holdings. JP Morgan served as financial adviser to
Textron. (Reporting by Narottam Medhora in Bangalore; editing by Anupama Dwivedi) [© 2013 Thomson Reuters. All rights reserved.] Copyright 2013 Reuters. All rights reserved. This material may not be published,
broadcast, rewritten or redistributed.
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