September 5, 2017

UTC moves to acquire Rockwell Collins

PHOTO | Contributed
PHOTO | Contributed

United Technologies Corp. late Monday agreed to buy Rockwell Collins Inc. for $30 billion.

Heavily rumored last week, the deal will make Farmington-based UTC an even larger player in the global aerospace industry. UTC is financing the deal with equity ($23 billion) and also will assume Rockwell Collins' $7 billion in debt. The combined entity will form a new UTC division called Collins Aerospace Systems.

Rockwell Collins' business is involved in avionics, flight controls, seating and interior systems, and data connectivity solutions, while UTC focuses on aerostructures, landing systems, electric and engine systems and propellers. UTC is parent not only to jet-engine maker Pratt & Whitney but also Otis Elevators, and air conditioner maker Carrier Corp.

The combined company is expected to have global sales of approximately $68 billion, with approximately $23 billion in sales from aerospace. Rockwell Collins CEO Kelly Ortberg will head the new division and Dave Gitlin, who runs UTC Aerospace Systems, will serve as president and COO.

In anticipation of the deal last week, Loren Thompson, an aerospace analyst with the Lexington Institute in Arlington, Va., hailed the potential deal, noting that Rockwell's radios and other products could be sold more easily through UTC networks and with UTC financial backing.

The transaction is expected to close by the third quarter of 2018.

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