Friday, February 27, 2009

Textron to sell HR Textron unit for $365M

By Mass High Tech staff

Defense and aerospace conglomerate Textron Inc. says it will sell HR Textron, an operating unit within its Textron Systems segment, to Woodward Governor Co. for $365 million in cash.

HR Textron makes mission-critical hydraulic and electric actuation systems and products for aircraft, guided weapons, armored vehicles and turbine engines. Its products are used in the F-35 Joint Strike Fighter, X-45 unmanned combat air vehicle (UCAV), Joint Direct Attack Munition (JDAM) and AIM-9-X Sidewinder programs, as well as the U.S. M1 Abrams Main Battle Tank.

According to Providence, R.I.-based Textron (NYSE: TXT) officials, the deal is expected to close early in the second quarter, subject to conditions and regulatory reviews. The sale should generate approximately $265 million in after-tax cash proceeds.

Woodward (Nasdaq: WGOV) is a Colorado-based designer, manufacturer and service provider of energy control products for commercial and military aircraft, turbines, reciprocating engines and electrical power system equipment.

In September 2008, Textron reported it was getting out of the pump and transmission business, with plans to sell its Fluid & Power business unit to Clyde Blowers Ltd., a U.K.-based maker of power, materials handling and pump technologies, for up to approximately $645 million.

Textron, known for its aircraft brands Bell Helicopter and Cessna Aircraft, reported a 2008 net income of $486 million on revenue of $14.2 billion.