United Technologies Corp. (NYSE: UTX) has announced the completion of the firm's acquisition of Rockwell Collins (NYSE: COL) and the company's intention to separate its commercial businesses, Otis and Carrier (formerly CCS), into independent entities.
The separation will result in three global companies:
- United Technologies, comprised of Collins Aerospace Systems and Pratt & Whitney, will be the preeminent systems supplier to the aerospace and defense industry; Collins Aerospace was formed through the combination of UTC Aerospace Systems and Rockwell Collins;
- Otis, the world's leading manufacturer of elevators, escalators and moving walkways; and
- Carrier, a global provider of HVAC, refrigeration, building automation, fire safety and security products with leadership positions across its portfolio.
United Technologies Chairman and CEO Gregory Hayes said that the company's decision to separate United Technologies is a pivotal moment in the firm's history and will best position each independent company to drive sustained growth, lead its industry in innovation and customer focus, and maximize value creation. UTC products make modern life possible for billions of people and the company is confident that each company will continue the firm's proud history of performance, excellence and innovation while building an even brighter future. As standalone companies, United Technologies, Otis and Carrier will be ready to solve customers' biggest challenges, provide rewarding career opportunities as well as contribute positively to communities around the world.
United Technologies (NYSE: UTX), comprising Collins Aerospace and Pratt & Whitney, will be the preeminent systems supplier to the high-growth commercial aerospace and defense industry, with a unique portfolio of technologies and scale to invest through economic cycles. Combined sales of the two businesses totaled $39.0 billion in 2017 on a pro forma basis. Collins Aerospace supplies electrical, mechanical and software solutions across all major segments of the aerospace industry and serves commercial and military customers. Pratt & Whitney is a global leader in aircraft propulsion with a growing number of engine programs including the revolutionary Geared Turbofan™ commercial engine and the F135 military engine for the F-35 Joint Strike Fighter program.
Gregory Hayes will oversee the transition and will continue in his current role as UTC Chairman and CEO following the separation.
UTC's acquisition of Rockwell Collins is one of the largest in aerospace history and brings together Rockwell Collins and UTC Aerospace Systems to create Collins Aerospace Systems, an industry leader with a global presence of 70,000 employees in 300 sites and $23 billion in annual sales on a 2017 pro forma basis. United Technologies expects the deal to be accretive to adjusted earnings per share in 2019 and to generate more than $500 million in run-rate pre-tax cost synergies by year four.