Textron Snaps Up Unmanned-Aircraft Maker UIC For $1.1B

Textron Inc. announced Monday morning it will acquire aeronautics and defense company United Industrial Corp. [UIC] for approximately $1.1 billion. The offer is for $81 per UIC share, a roughly 7% premium to Friday's closing price of $75.62. The $1.1 billion deal for the unmanned-aircraft manufacturer includes a tender offer for 10 million common shares, due to begin around October 16, as well as additional UIC shares Textron plans to offer UIC bondholders. Textron, which makes Bell Helicopters and Cessna aircraft, believes UIC is a "superb strategic fit...in perfect alignment with our strategy" to widen defense operations. The deal marks Textron's first foray into the unmanned-aircraft business. Shares of Textron are up nearly 45% over the recent 52-week period; UIC shares are up more than 41% over the same time frame.

Sources: Press Release, Wall Street Journal, MarketWatch, AP, Reuters
Commentary: On United Industrial Corp.'s Tender Offer: I'd Pass • United Industrial Going the Slow-Motion Self-LBO Route With Latest Buyback • Textron: Flying Higher and Higher
Stocks/ETFs to watch: UIC, TXT

Seeking Alpha's news briefs are combined into a pre-market summary called Wall Street Breakfast. Get Wall Street Breakfast by email -- it's free and takes only seconds to sign up.

Comments

[jwiggington:]

This deal may have been easier to negotiate than people think, according to research the executives had corporate ties through GE, Lockheed, and Honeywell www.newsvisual.com/new... . This might have helped ease some of the negotiations.

2007 Oct 08 03:29 PM