On September 4, 2018, United Technologies Corporation (UTC) announced a merger agreement with Rockwell Collins, a company specializing in aerospace and defense technologies. The deal was valued at $30 billion and was one of the biggest mergers in the aerospace and defense industry.
The merger agreement allowed UTC to bolster its position in the aerospace industry by acquiring Rockwell Collins, a company with a strong portfolio of aviation electronics and communication solutions. The deal also allowed UTC to diversify its business operations and expand its product offerings to aviation customers worldwide.
The merger agreement included several key terms, including the purchase price of $140 per share in cash and UTC assuming $7 billion in Rockwell Collins’ debt. Additionally, the agreement included a commitment to maintain Rockwell Collins’ headquarters in Cedar Rapids, Iowa and UTC’s headquarters in Farmington, Connecticut.
The merger agreement also addressed potential antitrust concerns. To appease regulatory authorities, UTC agreed to sell its aerospace interiors business, which included seating components, to B/E Aerospace. The divestiture of this business unit helped ensure that the combined company would not have a monopoly in the aerospace industry.
The merger agreement was approved by Rockwell Collins’ shareholders and obtained regulatory approval from the Department of Justice and the European Union. The combined company, named Collins Aerospace, began operations in 2018 and has since become a global leader in the aerospace industry.
The UTC-Rockwell Collins merger agreement was a significant milestone in the aerospace and defense industry. The deal allowed UTC to enhance its position in the aviation market, expand its product offerings, and strengthen its competitive advantage. The merger also enabled Rockwell Collins to benefit from UTC’s extensive global network, financial resources, and technological expertise.
In conclusion, the UTC-Rockwell Collins merger agreement was a win-win situation for both companies. The merger allowed both companies to capitalize on their strengths and create a robust aerospace and defense company that can meet the complex needs of the aviation industry worldwide.