United Technologies To Buy Rockwell Collins

September 5, 2017

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United Technologies (UTC) has reached a definitive agreement to acquire Rockwell Collins to create “a premier aerospace systems supplier” in a deal worth USD$30 billion.

The agreement values Rockwell Collins at $23 billion, with UTC also assuming Rockwell’s $7 billion debt. Each Rockwell share is worth $140 under the deal, with $93.33 of that in cash and $46.67 in UTC stock.

“This acquisition adds tremendous capabilities to our aerospace businesses and strengthens our complementary offerings of technologically advanced aerospace systems,” UTC chief executive Greg Hayes said.

“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”, he added.

The combined company, to be called Collins Aerospace Systems, is expected to have global sales of approximately $67 million to $68 billion following the transaction.

United Technologies owns Pratt & Whitney which makes jet engines, including the delayed geared turbofan for the Airbus A320neo family of aircraft. Rockwell Collins is a supplier of avionics, and through its takeover of B/E Aerospace, also manufactures aircraft seats and cabin interiors.

The Rockwell Collins acquisition is expected to close by the third quarter of 2018, subject to shareholder approval.