$3.3 Billion Sale Of Former Raytheon Division Completed
Hawker Beechcraft Inc. -- the new company formed by GS
Capital Partners, an affiliate of Goldman Sachs, and Onex Partners
-- has completed its purchase of Raytheon Aircraft Company for
approximately $3.3 billion in cash.
The Canadian investment group also holds a majority ownership in
Spirit AeroSystems, Inc., of Wichita, KS. Spirit AeroSystems was
formed in the 2005 purchase of Boeing's structural-components
business in Wichita by the Canadian firm.
Sedgwick County Commission Chairman Ben Sciortino told the
Wichita Business Journal he was "very excited" at news of the
sale.
"This is big, big news," Sciortino said.
US Representative Todd Tiahrt, R-Wichita, spoke with Raytheon
chairman and CEO Jim Schuster early Thursday and said he was
assured Raytheon's management team would remain intact and "current
Raytheon employees won't have to reapply for their jobs."
"The best plane makers in the world are in Wichita," Tiahrt
says. "We've seen companies bought and split up and eventually just
go away but Onex proved they're in this to make it work with
Spirit. I'm relieved it's staying together like this."
The sale -- first announced December 21, 2006 -- includes
Raytheon Aircraft facilities and other assets in Wichita and
Salina, KS; Little Rock, AR; Dallas, TX and the company's FBO
network across the United States, the United Kingdom and Mexico,
according to a Raytheon press release.
"Completing the sale of Raytheon Aircraft Company gives us
further opportunity to invest in and grow our government and
defense business and to deliver value to our shareholders," said
William H. Swanson, Raytheon's Chairman and CEO.
Raytheon said it expects to use a
portion of the after tax sale proceeds for the early retirement of
approximately $1.0 billion of the company's debt and for a company
stock repurchase program of $750 million.
The transaction does not include Raytheon's ownership in either
Flight Options, LLC or Raytheon Airline Aviation Services LLC. The
80 year-old company posted 2006 sales at $20.3 billion,
specializing in defense, homeland security, and other government
markets. Headquartered in Waltham, MA, Raytheon employs 73,000
people worldwide.
"The purchase by a company in Wichita, committed to growing the
aircraft base, is great news for Kansas," says Kansas Governor
Kathleen Sebelius. "Our state has had a good working relationship
with Onex for some time now. They've shown a commitment to
continuing the great work being done in Wichita and this move
builds on that track record."
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