Textron to pay $1.1 billion for United Industrial

Textron Inc, a supplier of weapons systems, surveillance systems, marine craft, armoured vehicles and aircraft control components reported this morning that it would pay $1.1 billion, or $81 per share, to acquire United Industrial. The move, according to Textron chief, Lewis Campbell, is expected to "broaden [Textron's] leadership into unmanned vehicles."

UIC produces aerospace and defence systems through its AAI Corp. unit and subsidiaries. Campbell stated that "AAI is a superb strategic fit for Textron," whose offerings include Cessna jets.

The boards of directors for both Textron and UIC have already approved the deal, which is forecast to be completed by the end of this year. Merrill Lynch and Rothschild advised Textron, while JP Morgan Securities counselled UIC on an exclusive basis.