United Tech Strikes $30B Deal to Purchase Rockwell Collins

Pro Line Fusion flight deck manufactured by Rockwell Collins.

Reuters reported this week that United Technologies Corp (UTC) has agreed to a deal worth $30 billion to purchase Rockwell Collins. The deal will significantly increase UTC’s stature in the avionics industry.

UTC will pay $140 per share for Rockwell Collins, $93.33 in cash and $46.67 in stock. The $30 billion includes Rockwell Collins’ debt along with a total equity value of $23 billion.

UTC’s aerospace systems division and Rockwell Collins will be combined to create a new business unit named Collins Aerospace Systems.

“This acquisition adds tremendous capabilities to our aerospace businesses and strengthens our complementary offerings of technologically advanced aerospace systems,” UTC’s chairman and chief executive officer, Greg Hayes, said in the statement.

The two companies spent a month trying to reach this agreement, and their combined sales would be more than $62 billion.

“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 said.

The acquisition needs to be approved by regulators and shareholders of Rockwell Collins.

Rockwell Collins manufactures the Pro Line Fusion flight deck. Collins and Textron Aviation announced at EBACE 2015 that all new Beechcraft King Air 350i, 250, and C90GTx turboprops would come equipped with the deck.

United Technologies owns Pratt and Whitney, who is responsible for the production of King Air engines. The Pratt and Whitney XP67A engine upgrade from Blackhawk for King Air 350i recently received STC approval.

Going forward, it will be interesting to see what possible impact the new merger will have for King Air.

 

 

 

Share on Facebook0Share on Google+0Tweet about this on TwitterShare on LinkedIn0Email this to someone
Show Comments

GET THE LATEST KING AIR NATION NEWS

Signup to receive our weekly KingAirNation newsletter, containing all the latest news, tips, and stories from the King Air industry!