Cockpit Rockwell Collins
Rockwell Collins has been a leader in supplying aviation and avionics systems to commercial and military customers.

United Technologies Acquires Rockwell Collins

United Technologies and Rockwell Collins have agreed to the acquisition of Rockwell Collins by United Technologies for cash and stock, including payment of debt.

In a blockbuster deal, United Technologies will acquire Rockwell Collins for $140 per share plus United Technologies stock for Rockwell shareholders. The transaction, with a total net equity of $23 billion and value of about $30 billion, includes $7 billion in Rockwell’s debt. It is expected to save more than $500 million by the fourth year following its completion.

The two businesses are largely complimentary, with both serving different segments of commercial and military aerospace markets. “This acquisition adds tremendous capabilities to our aerospace businesses and strengthens our complementary offerings of technologically advanced aerospace systems,” said Greg Hayes, chairman and CEO of United Technologies. “Together, Rockwell Collins and UTC Aerospace Systems will enhance customer value in a rapidly evolving aerospace industry by making aircraft more intelligent and more connected.

 “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 continued. “This combination will also create new opportunities for the talented employees of both companies to advance innovation in a growing and dynamic industry.”

“We are extremely pleased to announce this compelling transaction with UTC which is a testament to the value we have created for Rockwell Collins’ employees, customers and shareowners,” added Kelly Ortberg, chairman, president, and CEO of Rockwell Collins. “The combination will enable us to compete more effectively for future business through continued investments in innovation, world-class integrated product offerings and the ability to retain the top talent in the industry.”

Rockwell Collins has been a long-time leader in civil and military aviation and avionics systems, including flight simulation and training systems (see photo). Upon completion of the transaction, Rockwell Collins and UTC Aerospace Systems will be integrated to form Collins Aerospace Systems, with Ortberg as CEO and Dave Gitlin as President and COO.

Hide comments

Comments

  • Allowed HTML tags: <em> <strong> <blockquote> <br> <p>

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.
Publish