United Technologies Corporation (UTC), which owns engine manufacturer Pratt & Whitney, has agreed to buy commercial and military parts supplier Rockwell Collins for $30bn (£23bn).
The combined organisation’s expertise in developing electrical, mechanical and software solutions will, UTC say,s enable it to deliver more innovative products and services as well as providing greater value for its customers and shareholders. The deal, which is expected to be completed by the third quarter of 2018, is subject to approval by Rockwell Collins shareholders and regulatory authorities. Upon completion of the transaction, the two companies will be integrated to create a new business unit named Collins Aerospace Systems, with Kelly Ortberg assuming the role of CEO.
Greg Hayes, UTC Chairman and CEO, commented: “This acquisition adds tremendous capabilities to our aerospace businesses and strengthens our complementary offerings of technologically advanced aerospace systems. Together, Rockwell Collins and UTC Aerospace Systems will enhance customer value in a rapidly evolving industry by making aircraft more intelligent and more connected.”
Kelly 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. We are looking forward to the next chapter in Rockwell Collins’ long and proud history, as part of UTC.”