Textron purchases 85% of United Industrial's stock in tender offer

By Lisa Kerner

Charlotte, N.C., Nov. 20 - Textron Inc., through its wholly owned subsidiary, purchased a total of 8,417,623 shares, or some 85%, of United Industrial Corp. common stock in its $81-per-share tender offer ended Nov. 13.

A total of 1,621,653 United Industrial shares, which had been tendered in the offer through notices of guaranteed delivery, were not delivered as required on or before Nov. 16 and were not purchased by Textron.

Textron plans to complete the merger "as soon as practicable" and on a long form basis if necessary, according to a company news release.

On Oct. 8, United Industrial agreed to be acquired by Textron in a deal valued at roughly $1.1 billion.

As previously reported, the Textron subsidiary will be merged into United Industrial, with United Industrial surviving the merger as a wholly owned subsidiary of Textron. United Industrial operates through its subsidiary, AAI Corp. AAI will become part of Textron's Bell segment, with the majority of the business operating within Textron Systems Corp.

United Industrial is based in Hunt Valley, Md., and provides aerospace and defense systems through AAI.

Providence, R.I.-based Textron has business in the aircraft, industrial and finance industries.

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