Transition Teams Handling Beechcraft Sale Details
WICHITA, Kan. (AP) -- The sale of Beechcraft to Cessna Aircraft's parent company, Textron, is expected to close in the first half of this year, pending government approvals.
The companies announced last month that Textron had finalized a deal to buy Beechcraft for about $1.4 billion.
Two transition teams for each company have been formed to work out the details, Beechcraft CEO Bill Boisture told The Wichita Eagle (http://bit.ly/KnU2F9 ). Those details include such things employment levels, production sites and reduction of costs.
Also formed is a steering committee composed of Boisture, Textron CEO Scott Donnelly and Cessna CEO Scott Ernest.
"We will meet regularly and frequently as the transition team and will meet monthly with the steering committee to review the progress that the teams are making," Boisture said.
Boisture said the necessary paperwork for regulatory approval has been filed. Included in the sale to Textron are the assets of the Hawker 4000 and Premier IA type certificates, along with Beechcraft's Plant 3, that had been up for sale separately.
Textron has said it intends to continue with Beechcraft branding.
"Clearly, we need to take actions necessary to make Cessna and Beechcraft profitable and healthy businesses," Donnelly said last month.
Donnelly said at the time those actions would include continuing investments in the companies' product lines and service businesses as well as restructuring, which will likely include some job cuts. The company will review general and administrative costs and the management of two global service networks.
Beechcraft had revived a sale process a year after a deal to sell to Superior Aviation Beijing Co. in China during Beechcraft's bankruptcy restructuring fell apart. Beechcraft emerged from Chapter 11 bankruptcy protection in early 2013.