Raytheon to Sell Raytheon Aircraft Company

Raytheon signed a definitive agreement to sell its wholly owned subsidiary Raytheon Aircraft Company (RAC) to Hawker Beechcraft Corporation, a new company formed by GS Capital Partners, an affiliate of Goldman Sachs, and Onex Partners. The company also announced that, subject to the closing of this transaction, its board of directors has approved further debt reduction and an increase in the company's stock repurchase authorization. The company will sell RAC for approximately $3.3 billion and expects net after-tax proceeds to be approximately $2.5 billion. The transaction includes Raytheon Aircraft facilities and other assets in Wichita and Salina, Kansas; Little Rock, Ark.; Dallas, Tex. as well as its fixed base operations (FBO) network across the United States, United Kingdom and Mexico. The sale is expected to close in the first half of 2007. More