Amid much speculation in the aircraft interiors industry that United Technologies Corp (UTC) is taking over Rockwell Collins, the move has now been made official. The parties have announced a definitive agreement by which UTC will acquire Rockwell Collins for US$140.00 per share, in cash and UTC stock: a purchase price that implies a total equity value of US$23bn and a total transaction value of US$30bn, including Rockwell Collins’ net debt.
Rockwell Collins is a major player in the avionics, flight controls, data connectivity and aircraft interiors sectors – particularly since its acquisition of interiors giant B/E Aerospace in April for US$8.6bn. On a 2017 pro forma basis, the company’s estimated sales are expected to exceed $8bn.
“This acquisition adds tremendous capabilities to our aerospace businesses and strengthens our complementary offerings of technologically advanced aerospace systems,” said UTC chairman and CEO, Greg Hayes. “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.”
Ortberg, chairman, president and CEO of Rockwell Collins added, “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.”
The transaction is projected to close by the third quarter of 2018, subject to approval by Rockwell Collins’ shareowners, as well as other customary closing conditions, including the receipt of required regulatory approvals.
On a pro-forma 2017 basis, UTC is expected to have global sales of approximately US$67 to $68bn following the transaction, based on estimated results.
