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United Technologies buys Rockwell Collins

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AVIONICS / NORTH AMERICA | 05/09/2017

Multinational conglomerate United Technologies Corp. (UTC) and Rockwell Collins have reached a definitive agreement under which UTC will acquire Rockwell Collins for $140.00 per share, in cash and UTC stock. The agreement was announced on September 4, 2017.

According to a jointly issued statement, the purchase price implies a total equity value of $23 billion and a total transaction value of $30 billion, including Rockwell Collins’ net debt. Once the transaction is completed, Rockwell Collins will merge with UTC’s Aerospace Systems division and renamed to Collins Aerospace Systems. Rockwell Collins’ current CEO Kelly Ortberg and UTC Aerospace Systems’ current President and COO David Gitlin will assume their respective roles within Collins Aerospace Systems.

“This acquisition adds tremendous capabilities to our aerospace businesses and strengthens our complementary offerings of technologically advanced aerospace systems,” commented UTC Chairman & CEO Greg Hayes. “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.”

Also read: Rockwell Collins completes acquisition of B/E Aerospace

According to Ortberg, the transaction is a testament to the created value for Rockwell Collins’ employees, customers and shareowners.

The transaction is projected to close by Q3-2018, subject to approval by Rockwell Collins’ shareowners, as well as other customary closing conditions, including the receipt of required regulatory approvals.

“We have demonstrated we can successfully integrate large acquisitions into our business and I have full confidence that the team has the capability to do it again,” Hayes concluded. “Once we have completed the integration of Rockwell Collins and made progress towards reducing leverage back to historical levels, we will have an opportunity to explore a full range of strategic options for UTC.”

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