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TEXTRON TO ACQUIRE CESSNA AIRCRAFT FROM GENERAL DYNAMICS

 TEXTRON TO ACQUIRE CESSNA AIRCRAFT FROM GENERAL DYNAMICS
 PROVIDENCE, R.I., Jan. 20 /PRNewswire/ -- Textron Inc. (NYSE: TXT) and General Dynamics Corporation (NYSE: GD) jointly announced today that they have agreed for Textron to acquire Cessna Aircraft Company, for $600 million in cash, from General Dynamics Corporation. The boards of directors of both companies have approved the transaction which is expected to be completed by March 31, 1992.
 James F. Hardymon, Textron's president and chief executive officer, said: "We are excited about this acquisition because we believe it will help us to build value for Textron's shareholders. This is a unique opportunity to acquire Cessna, which is the world standard by which business jet aircraft are measured and is a perfect fit with our growing commercial aviation business. This will help us to offset the decline in defense spending on aerospace programs which we forsee in future years as the Department of Defense budgets are reduced. The acquisition of Cessna will strengthen the commercial operations of Textron's Aerospace Technology Group and will provide opportunities for operational efficiencies with our Bell Helicopter, Lycoming Engines, Aerostructures and Financial operations."
 William A. Anders, chairman and chief executive officer of General Dynamics, said: "Despite Cessna's leadership in general aviation aircraft, our shareholders were not realizing its full value because it was overshadowed by our multi-billion dollar defense business. This transaction captures that value for shareholders and is consistent with our strategy to maximize shareholder value and focus the company on our core defense competencies. Furthermore, we appreciate the fine support of the management and employees of Cessna and wish them well in this new association."
 Approximately 5,400 Cessna employees will be joining Textron upon completion of the sale.
 Based in Wichita, Kan., Cessna, with sales of approximately $820 million in 1991, is the world's leading designer and manufacturer of business jet and utility turboprop aircraft. A manufacturer of general aviation aircraft until the early 1980s through its line of piston engine aircraft, Cessna has successfully refocused its business on the Citation business jet and the Caravan utility turboprop line.
 Cessna has captured two-thirds of the new light-medium segment of the business jet market, and the "Cessna Citation" name is recognized throughout the world for its superior performance, attractive price, economic operating costs, versatility, safety and reliability. In 1986, Cessna received the prestigious Collier Trophy for its perfect worldwide safety record in 1985, becoming the first business aircraft manufacturer ever to receive the award. As an example of Cessna's recognized safety record, the Citation I, Citation II and Citation V are the only business jets ever certified by the Federal Aviation Administration for single pilot operation.
 Cessna also sells a line of "Caravan" utility single-engine turboprop aircraft which are used for a wide variety of missions including passenger, cargo and overnight package delivery by companies such as Federal Express. Cessna is the only business jet manufacturer with factory-direct customer support which is provided through an extensive, worldwide network of company-owned Citation Service Centers and authorized representatives, and also operates a propeller manufacturing division and a captive finance subsidiary.
 Textron is a multi-industry company with operations focused in three business sectors: Aerospace Technology, Commercial Products and Financial Services.
 General Dynamics is engaged in design, development, manufacture and upgrade of defense systems and in the production and delivery of construction materials and natural resources.
 -0- 1/20/92
 /CONTACT: Raymond W. Caine Jr. of Textron, 401-421-2800, or 401-457-2352 (after 5 p.m.); or Alan A. Spivak of General Dynamics, 703-876-3190/
 (TXT GD) CO: Textron Inc.; General Dynamics Corporation ST: Rhode Island, Missouri IN: AIR ARO SU: TNM


SH-DH -- NE014 -- 1579 01/20/92 18:38 EST
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Publication:PR Newswire
Date:Jan 20, 1992
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