Textron (TXT) has agreed to acquire Beechcraft for $1.4B in a deal that will add the latter's small propeller-driven aircraft to a Textron portfolio that includes Cessna aircraft and Bell helicopters.
"Terrific product fit," wrote analyst Cai von Rumohr prior to the announcement of the deal. Textron's "Cessna and Beechcraft have complementary product lines, with Cessna focused on bizjets and Beech on turboprops, pistons."
The deal will also enable Textron to offer more affordable defense products at a time of budget cuts across the globe - one of Beechcraft's main products is the AT-6 trainer.
Textron intends to finance the deal through cash on hand and as much as $1.1B in new debt.
The acquisition comes after Beechcraft exited bankruptcy protection in February, having filed for Chapter 11 in May 2012. (PR)