United Technologies to acquire Rockwell Collins for $30B
September 05, 2017
United Technologies has agreed to pick up aircraft equipment manufacturer Rockwell Collins for $140 per share, a purchase price that implies an equity value of $23 billion and a transaction value of $30 billion when including debt. Each Rockwell Collins shareowner will receive $93.33 per share in cash and $46.67 in shares of UTC common stock. The takeover represents the largest ever in the aerospace & defense industry, according to the PitchBook Platform.
The bid for Rockwell Collins represents an 18% premium to where the company's stock traded prior to news of a possible deal early last month. The integration of the companies could result in UTC, which also manufactures Otis elevators and Carrier air conditioners, being split into several separate companies, per the WSJ.