CC Wealth Ltd is following Textron Inc, the maker of the Cessna line of aircraft as they purchase famed aircraft manufacturer Beechcraft for $1.4 billion
In what may be one of the most appropriate and best fitting of corporate amalgamations in recent years, Textron Inc has agreed to buy the outstanding equity of Beechcraft Holding LLC, the parent of Hawker Beechcraft. Beechcraft which returned from bankruptcy protection in 2012 has been the subject of several takeover bids this year, the most recent being made by Chinese jet maker which collapsed in August.
Textron the owner of Cessna has seen a year in which corporate jet buyers have moved their preferences to larger 10 seat, 60 feet and upwards models, a range that Cessna's Citation range of private jets doesn't cover. Corporate buyers of smaller airframes have however strongly adopted fast turboprop planes over 2013, a product niche that Beechcraft dominates with its King Air line up.
"This is simply an excellent fit for both companies. It will be 2017 before Cessna's Longitude series of large private jets enters service and Beechcraft makes excellent multi engine turboprop aircraft, the fastest growing market, up 46% in the first three quarters, while small jet deliveries are down 2.1%. This will help Cessna hold market share until they can compete in the large jet business" extolled Peter Weiss, Senior Fund Manager at CC Wealth Ltd.
With aviation maker across the world enjoying a spectacular year in 2013, Textron has seen its share value rise accordingly by 46%, gaining 2.2% to $37 in extended trading following the news of its Beechcraft buyout. ROI for the year to date for the company stands at 49.38%
"The aviation industry has quietly gone about experiencing a boom over the last 24 months and this has been spread across nearly all product types and regions. Base on expected orders and preliminary expansion outlines for airlines in 2014 we would expect to see additional growth in this market place" concluded Peter Weiss of CC Wealth Ltd