Raytheon Concludes Sale of its Aircraft Subsidiary

AINalerts » March 27, 2007
March 27, 2007, 11:59 AM

Raytheon yesterday announced it completed the sale of its wholly owned Raytheon Aircraft subsidiary to Hawker Beechcraft, a new privately held company formed by GS Capital Partners (an affiliate of Goldman Sachs) and Onex Partners, for approximately $3.3 billion in cash. The transaction includes Raytheon Aircraft facilities and other assets in Wichita and Salina, Kan.; Little Rock, Ark.; and Dallas; as well as its nine-facility FBO/maintenance network (now known as Hawker Beechcraft Services) in the U.S., UK and Mexico. The transaction does not include Raytheon’s ownership in fractional provider Flight Options or Raytheon Airline Aviation Services, which manages the Beechcraft 1900D program. “Completing the sale of Raytheon Aircraft gives us further opportunity to invest in our government and defense business and to deliver value to our shareholders,” said Raytheon chairman and CEO William Swanson. Raytheon had disclosed last July that it was “reviewing strategic alternatives for Raytheon Aircraft” and three major bidders quickly emerged, including the Carlyle Group and Cerberus Capital Management. “There will be no management changes,” according to a Hawker Beechcraft spokesman.

Share this...

Please Register

In order to leave comments you will now need to be a registered user. This change in policy is to protect our site from an increased number of spam comments. Additionally, in the near future you will be able to better manage your AIN subscriptions via this registration system. If you already have an account, click here to log in. Otherwise, click here to register.