Investment Consortium Forms 'Hawker Beechcraft
Corporation'
Raytheon Company announced
today that it has signed a definitive agreement to sell its wholly
owned subsidiary Raytheon Aircraft Company (RAC) to Hawker
Beechcraft Corporation, a new company formed by GS Capital
Partners, an affiliate of Goldman Sachs, and Onex Partners. The
Company also announced that, subject to the closing of this
transaction, its Board of Directors has approved further debt
reduction and an increase in the Company's stock repurchase
authorization.
"The sale of Raytheon Aircraft Company further demonstrates our
commitment to deliver on the company's strategy of focusing on our
core Government and Defense business and providing the best
technology, solutions and Mission Support to our global
customers,” said William H. Swanson, Raytheon's Chairman and
CEO. The Company will sell RAC for approximately $3.3 billion and
expects net after-tax proceeds to be approximately $2.5
billion.
The transaction includes Raytheon Aircraft facilities and other
assets in Wichita and Salina, Kansas; Little Rock, Arkansas;
Dallas, Texas; as well as its Fixed Based Operations (FBO) network
across the United States, United Kingdom and Mexico.
The sale, which is subject to customary conditions and
regulatory approvals, is expected to close in the first half of
2007.
Raytheon announced in July 2006 that it was reviewing strategic
alternatives for Raytheon Aircraft Company, a world leading
manufacturer of business and specialmission aircraft, providing a
wide variety of aviation products and services for businesses,
governments and individuals. RAC has more than 8,500 employees and
has approximately 100 authorized service centers worldwide.
Subject to the closing of this transaction, the Raytheon Board
of Directors has authorized the repurchase of up to an additional
$750 million of the Company's outstanding common stock, commencing
in 2007. Also, subject to the closing of the RAC sale, the Board of
Directors has authorized the early retirement of approximately $1.0
billion of the Company's outstanding debentures. This is in
addition to the $685 million of scheduled debt maturities in
2007.
The transaction does not include Raytheon's ownership in either
Flight Options, LLC or Raytheon Airline Aviation Services LLC, both
of which are reported in the "Other” segment of the Company's
financial statements.