Textron to Sell TRU Simulation + Training Canada to CAE
Textron Inc. (NYSE: TXT) has announced a definitive agreement to sell its non-U.S. businesses under TRU Simulation + Training Inc. to CAE Inc. for US$40 million. The transaction includes the sale of TRU Simulation + Training Canada, operations in France and Malaysia, and a minority interest in Iceland. It is subject to regulatory approvals and is expected to close in late 2020 or early 2021. The sale does not affect Textron's Florida operations that focus on simulators for aviation and rotorcraft.
- Acquisition proceeds of US$40 million could strengthen Textron's financial position.
- Focus remains on core operations in Florida, ensuring continuity in development.
- Sale of international businesses may result in reduced revenue streams.
- Dependency on regulatory approvals could delay the transaction closure.
PROVIDENCE, R.I.--(BUSINESS WIRE)--Textron Inc. (NYSE: TXT) today announced that its TRU Simulation + Training Inc. subsidiary has reached a definitive agreement to sell certain of its non-U.S. businesses to CAE Inc., a global high-technology leader in training for civil aviation, defense and security, and healthcare, for a cash consideration of US
Included in the transaction is the sale of TRU Simulation + Training Canada Inc., which includes its Montreal manufacturing operations, as well as ETOPS entities in France and Malaysia and a minority interest in a joint venture in Iceland. The transaction is subject to regulatory approvals and other customary closing conditions and is expected to close during the 4th Quarter of 2020 or early 2021. The businesses being sold by Textron operate as part of the Textron Systems segment. TRU Simulation + Training Inc. and its operations in Tampa, Florida, which remain focused on the development of simulators for Textron Aviation and rotorcraft platforms, are not included in the sale.
About CAE
CAE is a high technology company, at the leading edge of digital immersion, providing solutions to make the world a safer place. Backed by a record of more than 70 years of industry firsts, we continue to reimagine the customer experience and revolutionize training and operational support solutions in civil aviation, defence and security, and healthcare. We are the partner of choice to customers worldwide who operate in complex, highstakes and largely regulated environments, where successful outcomes are critical. As a testament to our customers’ ongoing needs for our solutions, over 60 percent of CAE’s revenue is recurring in nature. We have the broadest global presence in our industry, with approximately 10,000 employees, 160 sites and training locations in over 35 countries. www.cae.com
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 Helicopter, Cessna, Beechcraft, Hawker, Jacobsen, Kautex, Lycoming, E-Z-GO, Greenlee, Textron Off Road, Arctic Cat, Textron Systems, and TRU Simulation + Training. For more information visit: www.textron.com.
Certain statements in this press release may describe strategies, goals, outlook or other non-historical matters; these forward-looking statements speak only as of the date on which they are made, and we undertake no obligation to update them. 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, delay in the timing of completion of the transaction; the inability to complete the transaction due to the failure to receive required regulatory or other approvals or to satisfy other conditions; difficulties or unanticipated expenses in connection with the consummation of the transaction; and the risk that the transaction disrupts current plans and operations.
