US engineering concern United Technologies Corp (UTC) is at the final stage of negotiations for acquisition of the manufacturer of aviation electronic equipment Rockwell Collins for almost 30 billion USD including debt.
The final terms of the deal have not been agreed yet, but the parties are trying to complete the negotiations before next week. According to one of the persons familiar with the negotiations, the price of the Rockwell Collins stock will be about 140 USD within the takeover. At the close of the main session on August 29, the stock price of the company was 130.74 USD and company’s market capitalization was 21.2 billion USD. The net debt of Rockwell Collins is estimated at 7 billion USD.
Rockwell shares rose by 40% since the beginning of 2017, one of the reasons were rumors about the interest of UTC to the company. The acquisition of Rockwell will further increase the importance of UTC as a supplier of components for the world’s leading aerospace companies – Boeing and Airbus. In addition, after this transaction, the concern may consider the option of allocating aviation equipment to an independent company.
Among the manufacturers of aviation components continues the active consolidation, as the UTC deal and Rockwell Collins will be the third in less than an year. A few months ago, Rockwell completed the takeover of B/E Aerospace, which manufactures interior items for showrooms and toilets of airplanes, for 8.6 billion USD. Earlier this year, the French supplier of aviation engines Safran agreed to purchase the French component manufacturer Zodiac for 8.7 billion EUR including debt.
UTC unites a number of companies that supply products and services for the aerospace and construction industries. The Otis is lifts and escalators manufacturer, Pratt & Whitney produces aircraft engines, Hamilton Sundstrand provides life support systems, Carrier is making air conditioning and heating systems, while the UTC Fire & Security is building fire fighting unit and the UTC Power is building power machines. The company’s enterprises operate in approximately 70 countries.
United Technologies Aerospace Systems is among the top 20 suppliers of components for all major airliners, both Boeing and Airbus. UTC has more than 200,000 employees worldwide, with annual revenues exceeding 57 billion USD.
