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Gulfstream lands jet deal
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July 24, 1998: 8:49 a.m. ET
Jet maker buys Kimberly-Clark's K-C Aviation unit for $250 million cash
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NEW YORK (CNNfn) - Gulfstream Aerospace Corp. said Friday it is acquiring the K-C Aviation unit of Kimberly-Clark Corp. for $250 million in cash.
K-C Aviation operates a completion center for corporate aircraft that specializes in custom business jets.
Gulfstream, a business-jet manufacturer, said the acquisition will "substantially increase its aircraft completion capacity."
"Gulfstream will now have 18 additional completion slots in 1999, which will help us work through existing backlog faster," said Gulfstream Chairman Theodore Forstmann. "We will also be able to deliver aircraft sooner to people placing new orders today."
Gulfstream said the acquisition, which will be funded from the company's cash on hand, will add to its earnings beginning in the first full year of operations. The companies expect the deal to be completed in the third quarter.
Gulfstream (GAC) shares closed at 46-15/16 in Thursday trading, up 3/16. Kimberly-Clark (KMB) shares slipped 11/16 to close at 46-11/16. 
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