Textron, the parent company of Augusta-based E-Z Go, says it intends to separate its Industrial segments from the company’s core aerospace and defense businesses. Selling off E-Z Go is a possibility, according to a press release Textron just released to stakeholders and on its website.
Amongst its choices, Textron says it intends to explore multiple paths to effect the planned separation of its Industrial segment, including but not limited to a sale of the Industrial businesses or a tax-free separation into a standalone, publicly traded company.
“This planned separation creates greater clarity and focus for both businesses,” said Lisa M. Atherton, Chief Executive Officer of Textron. “New Textron will move forward as a pure-play aerospace and defense 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.”
In the press release, Textron released the following information:
Compelling Strategic Rationale for a Separation
New Textron and Industrial operate in distinct markets with unique business opportunities and investment requirements. As separate companies, each is expected to benefit from:
- Enhanced agility and focus to better position for long-term success;
- Ability to tailor capital allocation strategies aligned with each company’s growth profile, product development activities, and larger industry dynamics;
- Increased strategic flexibility to pursue organic and inorganic growth opportunities;
- Compelling investment profiles appealing to different investor bases; and
- Distinct management teams comprised of experienced industry leaders with relevant expertise and track records of value creation.
Transaction Details
The Company is targeting completion of the separation within 12 to 18 months, subject to the satisfaction of certain conditions customary for such a proposed separation, including receipt of any required regulatory approvals and final approval of the Company’s Board of Directors. There can be no assurance regarding the ultimate timing or structure of the proposed separation or that a transaction will be completed.
As the Company pursues this separation, Textron will continue to operate its Industrial businesses in alignment with its current strategy, including continued investments in growth, margin improvement, and innovation.
ABD readers can learn more about Textron/EZ Go’s transition with this FULL PRESS RELEASE.
