Textron plans to separate its industrial segment from its aerospace and defense businesses. The Providence, Rhode Island-headquartered firm said Thursday that it is exploring multiple paths, including the sale of the business or a tax-free separation to establish a standalone, publicly traded company.
The company intends to complete the separation within 12 to 18 months.
How Will the Separation Benefit Both Businesses?
According to Lisa Atherton, who became CEO of Textron in October, the move will provide “greater clarity and focus.”
“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,” the executive explained…