Raytheon Buys Remaining Shares of Flight Options
On Thursday, Raytheon closed an agreement with minority shareholders Brantley Partners, Brantley Capital and Monitor Clipper Equity Partners to purchase their remaining interest in Cleveland-based fractional provider Flight Options LLC. Terms were not immediately disclosed. This purchase, which makes the fractional provider a wholly owned Raytheon subsidiary, comes not long after Raytheon’s $50 million equity infusion in Flight Options on August 12, which increased its stake in the Cleveland company from 69 percent to 97.6 percent. Raytheon intended to purchase 99 percent of the fractional provider at the time, but the minority investors sued to block the transaction. According to Raytheon’s third-quarter report, that lawsuit was settled for $7 million. Raytheon’s relationship with the Cleveland company began in April 2002 when its Travel Air fractional arm and Flight Options merged, with Raytheon taking a 49.9-percent share. At the time Raytheon was looking to get out of the fractional aircraft business and planned to eventually divest its interest in Flight Options.