Monday, October 8, 2007

Textron to pay $1.1B for defense firm

A Rhode Island-based defense contractor reports it plans to acquire United Industrial Corp. for $1.1 billion.

Textron Inc. is expected to complete the acquisition by the end of the year, pending required approvals, according to the company. Textron specializes in technologies ranging from helicopter manufacturing to surveillance and communications systems. Company executives report plans including making a cash tender offer for outstanding shares of United Industrial Corp.'s common stock at a price of $81 per share.

United Industrial Corp. is headquartered in Hunt Valley, Md., and specializes in the manufacture of unmanned aircraft systems, aviation ground support systems and armored vehicles for the defense and aerospace industries. The company employs 2,500 workers worldwide. The company reported $564 million in revenue for 2006, and operates through its wholly-owned subsidiary, AAI Corp.

Textron Inc. is based in Providence, R.I. and is known for its aircraft brands Bell Helicopter and Cessna Aircraft. The company reported revenue of $11.5 billion for 2006.