Textron (NYSE:TXT) has formed a new aviation segment following the acquisition of Beechcraft’s parent company Beech Holdings LLC for nearly $1.4 billion in cash.
Scott Ernest, formerly president and CEO of Textron’s Cessna business, has been appointed CEO of Textron Aviation, which combines the Beechcraft and Cessna businesses, Textron said Friday.
Scott Donnelly, Textron chairman and CEO, said the company intends for the combined aircraft brands to grow offerings and services in order to address customer demand.
The Beechcraft T-6 trainer and AT-6 light attack aircraft will be transferred to the Textron Aviation facility and the Cessna, Beechcraft and Hawker units will continue to be offered as separate products.
Textron also paid for Beechcraft’s working capital debt with $600 million in senior notes and $500 million in five-year loan.