No... Not THAT One, At Least Not Yet...

Textron -- parent company of Cessna and Bell Helicopter, among other aerospace manufacturers -- plans to add United Industrial Corporation to its inventory.

UIC's principal operating subsidiary, AAI Corporation, designs, produces, and supports aerospace and defense systems, including unmanned aircraft systems for the US military, prime contractors and allied nations.

Representatives with UIC tell ANN the board of directors of both companies approved the terms of the transaction, in which Textron will acquire all of the outstanding shares of UIC common stock for $81 per share in cash by way of a tender offer, followed by the merger of a wholly owned subsidiary of Textron into UIC, with UIC surviving the merger as a wholly-owned subsidiary of Textron.

The tender offer is expected to commence on or about October 16, 2007. The deal is expected to close during the fourth quarter of 2007, subject to the completion of required legal and regulatory requirements. The total value of the acquisition is expected to be approximately $1.1 billion at closing.

"This is an exciting new chapter for United Industrial. We have gained a solid reputation in our market niches and believe the merger with Textron will be a win-win for our customers and employees. It will allow us to be even more effective in delivering leading-edge innovative solutions to a growing list of satisfied customers," stated Frederick M. Strader, president and chief executive officer of UIC and AAI Corporation.

Textron may not be done purchasing aircraft companies just yet. As ANN has reported, the company's Cessna subsidiary signed a letter-of-intent to purchase bankrupt Columbia Aircraft Manufacturing late last month.

FMI: www.unitedindustrial.com, www.aaicorp.com, www.textron.com