Raytheon Aircraft on the block again

Aviation International News » December 2006
December 6, 2006, 10:00 AM

Is Raytheon Aircraft for sale? There isn’t much doubt about that. But will parent company Raytheon Company find a buyer? That’s the more difficult question.

The aircraft division was on the block in 2001 but failed to attract a buyer. The terrorist attacks of 9/11 and the subsequent recession further complicated the effort.
Raytheon Company is focused primarily on aerospace and defense, with the exception of actual platforms, and has often noted that its Raytheon Aircraft division is not part of that core business.

Now, with the civil aviation industry–and Raytheon Aircraft–rebounding nicely, “Raytheon Company is exploring various alternatives with respect to Raytheon Aircraft Company [RAC] which may involve a change in control of RAC,” according to a letter from Raytheon Company senior v-p of human resources Keith Peden to RAC chairman and CEO James Schuster on August 1.

The letter also noted that a “change in control is defined exclusively as the consummation of the sale of all or substantially all of the assets of RAC; [or] any consolidation or merger of RAC or sale, transfer or distribution of voting securities for RAC.”

There are signs of interest in acquisition of RAC, and at least one due-diligence process is currently in the early stages. Raytheon Company has retained Credit Suisse to assist in the sale.

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