Item 8.01 Other Events

On November 12, 2008, Textron Inc. ("Textron") completed the sale of its Fluid & Power business unit to Clyde Blowers Limited, a UK-based worldwide leader in the areas of power, materials handling, intermodal transport and logistics and pump technologies. Upon the closing, Textron received approximately $526 million in cash and a six-year note with a face value of $28 million. In addition, Textron may receive up to $50 million based on final 2008 operating results primarily payable in a six-year note, and Clyde Blowers has assumed certain liabilities. Included in the transaction was the sale of all four Fluid & Power product lines, which are Gear Technologies, Hydraulics, Maag Pump Systems, Union Pump and each of their respective brands. The sale generated after-tax proceeds of approximately $350 million.

Textron used a portion of the proceeds from the sale to repay at maturity its $300 million 6.375% notes which were due on November 15, 2008. The remaining proceeds will be used for general corporate purposes.

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