Market Overview

Aerospace Mega-Deal: United Technologies Buys Out Rockwell Collins For $30 Billion

Aerospace Mega-Deal: United Technologies Buys Out Rockwell Collins For $30 Billion
Related COL
United Technologies Is Breaking Itself Up Into 3 Companies
36 Biggest Movers From Friday
Related UTX
What You Need To Know About United Technologies' Business Split
Q3 13F Roundup: How Buffett, Einhorn, Ackman And Others Adjusted Their Portfolio
Steven Romick's Top 5 Holdings as of 'rd Quarter (GuruFocus)

United Technologies Corporation (NYSE: UTX) will acquire Rockwell Collins, Inc. (NYSE: COL) in a deal worth $30 billion, forging an aerospace behemoth producing virtually all types of avionics systems for commercial and defense aircraft.

The purchase price includes $23 billion and the acquisition of $7 billion in Rockwell Collins debt, the two companies said in a statement.

Word of the imminent merger had been circulating in recent days. UTC was down 2.18 percent at $117.92 in premarket trading and Rockwell Collins was up 1.37 percent at $130.61.

UTC is paying $140.00 per share, in cash and UTC stock.

New Company To Be Called Collins Aerospace Systems

UTC is expected to have global sales of approximately $67 billion to $68 billion following the transaction, based on estimated results.

Rockwell Collins and UTC Aerospace Systems will be integrated to create a new company called Collins Aerospace Systems. Kelly Ortberg will assume the role of chief executive officer with Dave Gitlin serving as president and chief operating officer.

Related Link: United Technologies For Rockwell Collins: Deal Or No Deal?

What It Means For Shareholders

Under the terms of the agreement, each Rockwell Collins shareowner will receive $93.33 per share in cash and $46.67 in shares of UTC common stock, subject to a 7.5 percent collar centered on UTC's August 22, 2017, closing share price of $115.69.

The deal is intended to close by the third quarter of 2018.

UTC reaffirmed its expectations for 2017 sales of approximately $58.5 billion to $59.5 billion and adjusted earnings in the range of $6.45 to $6.60 per share.

Image Credit: By 4028mdk09 (Own work) [CC BY-SA 3.0 (], via Wikimedia Commons

Posted-In: aviation Collins Aerospace Systems commercial aircraftNews Travel M&A Tech General Best of Benzinga


Related Articles (COL + UTX)

View Comments and Join the Discussion!

The Market In 5 Minutes

Del Taco CEO: Rising Avocado Prices Are A 'Structural Advantage'