Deal With Woodward Governor Set To Finalize In Q2 2009

Textron Inc. announced Friday that it has reached a definitive agreement to sell HR Textron, an operating unit within its Textron Systems segment, to Woodward Governor Company for $365 million in an all-cash transaction.

"This transaction is an excellent value for Textron and Woodward and is consistent with Textron’s financial strategy and our defense and intelligence systems strategy within the Textron Systems segment," said Lewis B. Campbell, Textron’s chairman and CEO.

The deal is expected to be completed early in the second quarter, subject to certain closing conditions and completion of pending regulatory reviews. The sale is expected to generate approximately $265 million in net, after-tax cash proceeds.

Including a small gain generated by the transaction, the sale is expected to reduce 2009 earnings by about $0.05 per share. HR Textron generated $260 million in revenues in 2008.

HR Textron supplies mission critical actuation systems and products for aircraft, guided weapons, armored vehicles and turbine engines. In the aerospace sector, the company builds hydraulic and electric primary flight control actuation products supporting the F-35 Joint Strike Fighter, X-45 unmanned combat air vehicle (UCAV, shown at right), Joint Direct Attack Munition (JDAM), and AIM-9-X Sidewinder programs, as well as a broad range of military and commercial helicopters.

Woodward Governor Company is an independent designer, manufacturer, and service provider of energy control and optimization solutions for commercial and military aircraft, turbines, reciprocating engines, and electrical power system equipment. The company's innovative fluid energy, combustion control, electrical energy, and motion control systems offer cleaner, more reliable, and more cost-effective equipment.

Woodward is headquartered in Fort Collins, CO, and serves global markets in aerospace, power and process industries, and transportation.

FMI: www.textronsystems.com, www.woodward.com