Textron Completes Sale Of Unit To Woodward
PROVIDENCE, R.I. (AP) ¿ Textron Inc., which makes Cessna jets, Bell helicopters and turf maintenance equipment, said Friday it completed the sale of one of its units to Woodward Governor Co.
Fort Collins, Colo.-based Woodward paid $365 million and other related fees, which was financed with available cash, borrowings of $105 million under a revolving credit agreement and new term debt financing.
Woodward expects the deal to boost its growth in motion-control applications in the aerospace and defense markets.
The sale of HR Textron, which supplies motion-control systems, will generate about $265 million in after-tax proceeds for Textron. The deal was first announced on Feb. 27.Textron has made top priorities this year of increasing its cash flow, exiting nearly all of its commercial finance business to improve liquidity, and improving operating performance in its manufacturing business. It anticipates it will have more than $1 billion in cash by the end of the first quarter ¿ significantly higher than the $400 million target it set in January. Shares of Textron closed up 29 cents, or 4.1 percent, to $7.42. Woodward rose 20 cents, or 1.6 percent, to $12.54.
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