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HR Textron bought by Colorado-based company

Woodward Governor pays $365 million for one of SCV’s largest employers

Posted: April 7, 2009 11:48 p.m.
Updated: April 7, 2009 11:47 p.m.
 

Woodward Governor Company has completed its purchase of one of the Santa Clarita Valley’s largest employers for $365 million.

Colorado-based Woodward acquired all the outstanding shares of stock of HR Textron, a Santa Clarita-headquartered company that employs about 900 workers, from Textron Inc.

Woodward also acquired all the UK assets and certain liabilities related to the HR Textron business of Textron Limited, according to an April 3 news release.

Woodward, which makes energy-control systems for aircraft, has changed HR Textron’s name to Woodward HRT.

“Woodward’s intent is to keep operating Woodward HRT in California,” Rose Briani-Burden, Woodward’s business-communications manager, said Tuesday. “I think right now, what we plan to do is invest and grow the business. We’re in that integration phase where we look at everything.”

“Everything” includes if and how Woodward HRT employees will be affected, according to Briani-Burden.

In a March report, Textron said the sale of the unit would add about $265 million in after-tax cash proceeds. It is expected to shave about 5 cents per share from Textron’s earnings in 2009.

“We’re very happy that we found a great buyer in Woodward for HR Textron and feel confident in moving forward that it was a win-win for both parties,” said Karen Gordon Quintal, director of external communications for Textron Inc. “This move is consistent with Textron’s portfolio strategy and equally important, it helps position HR Textron for further growth under Woodward.”

Briani-Burden said Woodward looked at HR Textron — which makes systems for weapons, aircraft, turbine engines and combat vehicles — because of HRT's airframe systems. Woodward expects the deal to boost its growth in motion-control applications in the aerospace and defense markets.

“We have four business segments and one is airframe systems. Woodward HRT is a perfect fit for our airframes-systems business segment,” Briani-Burden said. “In the long run, it will help us to be able to offer more complete systems to our airframe-systems customers and help us grow our business overall. It really enhances and adds to our offerings.”  

Woodward reported that the purchase price of $365 million and associated fees was funded with available cash, borrowings of $105 million under a revolving credit agreement and new term debt financing.

 

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