Defense contractor Raytheon Co. said Thursday it will sell its aircraft business, which makes Hawker and Premier business jets, for $3.3 billion to a new company formed by an affiliate of Goldman Sachs and a Canadian buyout firm.
Raytheon expects to see about $2.5 billion in proceeds after taxes. The purchasing company, called Hawker Beechcraft Corp., was formed by GS Capital Partners, an affiliate of Goldman Sachs Group Inc. and Canadian private-equity firm Onex Partners LP.
Raytheon Aircraft Co., based in Wichita, Kan., has more than 8,500 employees and has about 100 centers worldwide.
Subject to regulatory approval, the company expects the transaction to close in the first half of 2007. If the deal closes, the company is authorized to buy back an added $750 million in shares in 2007, and retire about $1 billion in debt.
Raytheon will begin reporting the aircraft business as a discontinued operation. As a result, the company lowered its guidance for 2006 and 2007.
Raytheon now expects 2006 earnings per share from continuing operations of $2.35 to $2.45, down from $2.70 to $2.80, on sales of $20 billion to $20.5 billion, down from $23.1 billion to $23.6 billion.
In 2007, Raytheon now forecasts earnings per share from continuing operations of $2.75 to $2.90, down from $2.95 to $3.05, on sales of $21.3 billion to $21.8 billion, down from $24.6 billion to $25.1 billion.
Analysts surveyed by Thomson Financial were expecting earnings per share of $2.81 on revenue of $23.32 billion for 2006, and $3.12 on revenue of $24.58 billion for 2007.
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