Textron to Acquire Electric Aircraft Pioneer Pipistrel

Rhea-AI Summary

Textron Inc. (NYSE: TXT) has signed an agreement to acquire Pipistrel, a leader in electric aircraft based in Slovenia and Italy. The acquisition aims to enhance Textron's capabilities in sustainable aviation and will establish a new segment called Textron eAviation. This move is expected to accelerate the development of electric and hybrid aircraft, leveraging Pipistrel’s expertise and resources. The deal is set to close in Q2 2022, pending regulatory approval. Pipistrel's founder will remain involved as a minority shareholder and advisor.

Positive

• Acquisition strengthens Textron's position in the sustainable aviation market.
• Pipistrel's expertise in electric aircraft will enhance Textron's product offerings.
• Establishment of Textron eAviation indicates long-term investment in sustainable technologies.

Negative

• Risks associated with integration of Pipistrel into Textron's operations.
• Uncertainty regarding anticipated synergies from the acquisition.

PROVIDENCE, R.I.--(BUSINESS WIRE)-- Textron Inc. (NYSE: TXT), home to the Cessna, Beechcraft, and Bell aviation brands, today announced it has entered into an agreement to purchase Pipistrel, an award-winning pioneer and global leader in electrically powered aircraft, based in Slovenia and Italy.

In 2020, Pipistrel’s Velis Electro became the world’s first, and currently only, electric aircraft to receive full-type European Aviation Safety Agency (EASA) certification. (Photo: Business Wire)

With Textron, Pipistrel will have access to greater resources, technical and regulatory expertise and a global aircraft sales and support network, enabling it to accelerate its development and certification of electric and hybrid electric aircraft. Upon closing of the transaction, Textron plans to form a new business segment, Textron eAviation, focused on the development of sustainable aircraft, which will include Pipistrel.

“Pipistrel puts Textron in a uniquely strong position to develop technologies for the sustainable aviation market and develop a variety of new aircraft to meet a wide range of customer missions,” said Textron Chairman and CEO Scott Donnelly. “Today’s announcement supports Textron’s long-term strategy to offer a family of sustainable aircraft for urban air mobility, general aviation, cargo and special mission roles.”

“Pipistrel has been celebrated as one of the world’s most important and successful manufacturers of electric aircraft,” continued Donnelly. “Textron is committed to maintaining Pipistrel’s brand, headquarters, research and development, and manufacturing in Slovenia and Italy, while making additional investments in Pipistrel for the development and production of future products.”

Pipistrel founder and CEO Ivo Boscarol will remain a minority shareholder as well as Chairman Emeritus, consulting on future product plans and strategies for a two-year period.

“Under my 30-year leadership, Pipistrel’s team has achieved a unique prime position in personal, affordable, environmentally friendly and electric aviation. The trend and foundation for future projects has clearly been set,” said Boscarol. “To drive Pipistrel’s ambitious goals and to continue its story of success, the joining of Textron and Pipistrel provides deep expertise and resources which would otherwise be inaccessible to Pipistrel alone. With Textron, we are together geared to strive for future growth and look forward to announcing exciting new products and projects. I am delighted to continue witnessing my vision become a reality by being actively engaged with the company for the future.”

The transaction is expected to close during the second quarter of 2022, subject to customary closing conditions, including regulatory approvals.

About Textron Inc.

Textron Inc. is a multi-industry company that leverages its global network of aircraft, defense, industrial and finance businesses to provide customers with innovative solutions and services. Textron is known around the world for its powerful brands such as Bell, Cessna, Beechcraft, Jacobsen, Kautex, Lycoming, E-Z-GO, Arctic Cat, and Textron Systems. For more information, visit: www.textron.com.

About Textron eAviation

Headquartered in Wichita, Kansas, Textron eAviation will focus on sustainable flying, backed by Textron’s 100 years of expertise and the restless spirit for innovation that is embodied in our Cessna, Beechcraft and Bell brands.

Taking the lead in Textron’s development of sustainably powered flight, Textron eAviation will leverage the industry-leading product design, certification, manufacturing, and aftermarket solutions from across Textron’s businesses coupled with the newly acquired expertise of Pipistrel.

About Pipistrel

In 2020, Pipistrel’s Velis Electro became the world’s first, and currently only, electric aircraft to receive full type-certification from the European Union Aviation Safety Agency (EASA). This achievement followed a series of electric aircraft introductions since the company began research and development of electric propulsion in 2000. Pipistrel's pioneering work has been recognized through awards from NASA, IDC, and other organizations. The company, which offers a family of gliders and light aircraft with both electric and combustion engines, has delivered more than 2,500 light aircraft worldwide since its founding in 1989 and additionally has both hybrid and electric propulsion models under development. This transaction include the following companies: PIPISTREL d.o.o., PIPISTREL VERTICAL SOLUTIONS d.o.o. and PIPISTREL ITALIA SRL. For more information, visit: www.pipistrel-aircraft.com.

Certain statements in this press release are forward-looking statements which may project revenues or describe strategies, goals, outlook or other non-historical matters; these statements speak only as of the date on which they are made, and we undertake no obligation to update or revise any forward-looking statements. These statements are subject to known and unknown risks, uncertainties, and other factors that may cause our actual results to differ materially from those expressed or implied by such forward-looking statements, including, but not limited to, the risk that the transaction will not be consummated as planned; difficulty or unanticipated expenses in connection with integrating the acquired business; the risk that anticipated synergies and opportunities as a result of the acquisition will not be realized; the efficacy of research and development investments to develop and certify new electric and hybrid electric aircraft products; unanticipated expenses or delays in connection with the launching of such new products; and our ability to keep pace with our competitors in the introduction of such new products.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220316006043/en/

Media:

Michael Maynard

mmaynard@textron.com

401-457-2362

Source: Textron

FAQ

What is Textron's acquisition of Pipistrel about?

Textron has agreed to purchase Pipistrel, focusing on enhancing its capabilities in sustainable aviation.

When is the acquisition of Pipistrel expected to close?

The acquisition is anticipated to close in the second quarter of 2022, subject to regulatory approvals.

How will the acquisition impact Textron's business?

It is expected to strengthen Textron's position in the sustainable aviation market and expand its electric aircraft offerings.

What will happen to Pipistrel after the acquisition?

Pipistrel will maintain its brand and headquarters, with additional investments planned for future developments.

Who will lead Pipistrel after the acquisition?

Pipistrel's founder, Ivo Boscarol, will remain a minority shareholder and serve as an advisor to the company.