United Technologies buys Rockwell Collins in $22.75 B deal
By THE ASSOCIATED PRESSGeneral Aerospace acquisition UTC
By acquiring Rockwell Collins, UTC expands it capabilities to become one of the world’s biggest aircraft-equipment makers.
NEW YORK — United Technologies has announced its latest acquisition in the hopes of expanding its aerospace capabilities. The Farmington, Connecticut-based company has purchased Rockwell Collins in a $22.75 billion deal.
United Tech, which makes Otis elevators and Pratt & Whitney engines, said Monday it’s paying $140 per share in cash and stock for Rockwell Collins, a 9.4 premium over Tuesday’s closing price, when reports of a deal surfaced.
“This acquisition adds tremendous capabilities to our aerospace businesses and strengthens our complementary offerings of technologically advanced aerospace systems,” said UTC Chairman and Chief Executive Officer Greg Hayes.
Including debt, the acquisition is worth $30 billion.
Rockwell Collins, based in Cedar Rapids, Iowa, makes flight deck avionics, cabin electronics and cabin interiors for commercial and military customers.
United Technologies called the businesses complementary and expects $500 million in pretax savings related to the deal. It reaffirmed its 2017 profit estimates.
“The integrated companies’ expertise in developing electrical, mechanical and software solutions will allow us to deliver more innovative products and services and provide greater value to our customers and shareowners,” Hayes adds.
The companies expect the deal to close by the third quarter of 2018, subject to approval from Rockwell Collins shareowners and regulators.