Collins Aerospace to Lead Three-Way Split of United Technologies

by Richard Pettibone, Aerospace & Defense Companies Analyst, Forecast International.

Having long been a conglomerate, UTC has decided that its operations would be better off as three independent companies.  With the completion of its $30 billion acquisition of Rockwell Collins, the company has announced plans to split into three operations: aerospace, including Pratt & Whitney and the new Collins Aerospace Systems; Otis Elevator; and UTC Climate, Controls & Security, which will operate under the Carrier name. The purchase price implies a total equity value of $23 billion and a total transaction value of $30 billion, including Rockwell Collins’ net debt.

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It’s Official, UTC Buying Rockwell Collins in $30 Billion Deal

by Richard Pettibone, Aerospace & Defense Companies Analyst, Forecast International.

 

After a summer of speculation, United Technologies Corp (UTC) and Rockwell Collins announced that they have reached a definitive agreement under which UTC will acquire Rockwell Collins in a cash and stock transaction valued at $30 billion. Continue reading

UTC Aerospace Systems Even More Formidable With Rockwell Collins

by Richard Pettibone, Aerospace & Defense Companies Analyst, Forecast International.

Rockwell Collins MFD-268C4 Displays in a UH-60M helicopter

While new aircraft orders have slowed lately, the production of commercial aircraft is exceptionally vibrant.  Airbus and Boeing are maintaining tremendous backlogs, and both manufacturers are ramping up production of their new fuel-efficient aircraft designs.  This robust market is one that UTC Aerospace Systems is especially well positioned to capture.  The combined entity offers a vast amount of product content – one-stop shopping – for commercial aircraft primes.  The combination should also offer economies of scale, making product costs lower and even more attractive. Continue reading