Textron Plans Separation of Industrial Segment

Textron plans to separate its industrial segment from its aerospace and defense businesses. The Providence, Rhode Island-headquartered firm said Thursday that it is exploring multiple paths, including the sale of the business or a tax-free separation to establish a standalone, publicly traded company.

The company intends to complete the separation within 12 to 18 months.

How Will the Separation Benefit Both Businesses?

According to Lisa Atherton, who became CEO of Textron in October, the move will provide “greater clarity and focus.”

“New Textron will move forward as a pure-play aerospace and defense company positioned for higher growth, while Industrial gains the independence to pursue strategies aligned with its distinct strengths—unlocking long term value for all stakeholders,” the executive explained.

Scott Donnelly, Textron’s executive chairman, also shared that the company’s board and management team concluded following a portfolio review that the separation will “sharpen the strategic focus of Textron and support long-term value creation for shareholders.”

What Will the Separated Textron & Industrial Businesses Offer?

The new Textron will continue to offer its core franchises: the Cessna and Beechcraft aircraft brands, Bell military and commercial rotorcraft, and its suite of aerospace and defense products and services.

Meanwhile, the industry business will offer its Kautex plastic fuel systems, battery enclosure and clear-vision systems and the Textron Specialized Vehicles E-Z-GO, PACE Technologies, Jacobsen and TUG Technologies.

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