The divestiture will leave Textron with Textron Aviation, helicopter maker Bell and defence-focused Textron Systems.
Conglomerate Textron intends to divest its industrials business within 18 months and become solely a defence and aerospace company, better positioning it to capitalise on those fast-growing segments, executives say.
Providence-based Textron disclosed the move on 30 April, continuing a larger trend that has seen other broad-based US multinationals split their aerospace businesses into standalone entities in recent years.
General Electric completed a spin-off of its aerospace unit into a separate business in 2024. Honeywell is currently in the process of doing so.
“This planned separation creates greater clarity and focus for both businesses,” says Textron chief executive Lisa Atherton.
“New Textron will move forward as a pure-play aerospace and defence company positioned for higher growth, while Industrial gains the independence to pursue strategies aligned with its distinct strengths — unlocking long-term value for all stakeholders,” she adds.
The industrial business that is to be jettisoned includes subsidiaries manufacturing automobile components and a variety of light ground vehicles. Textron expects to complete the divestiture in 12-18 months, either through an outright sale or by spinning the industrials division into a standalone publicly traded company.
Once complete, Textron would be left as a nearly $12 billion-revenue company with three divisions: Textron Aviation, the $6 billion owner of Cessna and Beechcraft; $4.3 billion helicopter maker Bell; and Textron Systems, a $1.3 billion firm that produces a range of products, including marine craft, unmanned aircraft, armoured land vehicles and piston aircraft engines.
Ditching the industrials segment will allow Textron to focus more directly on the aerospace and defence sales, providing “flexibility to pursue organic growth”, the firm says.
“This separation also enhances clarity around our capital allocation and investments,” Atherton adds.
The deal still requires approval by Textron’s board of directors.
The planned break-up comes as Honeywell prepares to spin-off its aerospace business into a standalone public company called Honeywell Aerospace in June, a move Honeywell has likewise said will leave that entity with clearer focus and greater financial flexibility.
Once-massive industrial giant GE divested its healthcare and energy businesses several years ago to become the standalone engine maker GE Aerospace.
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