Rockwell board rejected joint venture with UTC
DAVE DEWITTE Nov 22, 2017 | 5:15 pm
1 min read time263 wordsAll Latest News, Business Record Insider, Manufacturing & Logistics
Rockwell Collins’ board of directors nixed a joint venture with United Technologies Corp., hashed over the increasingly challenging industry climate and even approached two other potential buyers before agreeing to be acquired for about $30 billion, according to documents released recently.
United Technologies Corp. (UTC) is on track to acquire Rockwell Collins in the third quarter of fiscal 2018, with plans to create a new Collins Aerospace Systems business with its Aerospace Systems businesses, including engine maker Pratt & Whitney and components suppliers Goodrich and Hamilton Sundstrand.
The acquisition provided some good talking points for UTC executives as they released third-quarter results on Oct. 24.
“[Rockwell] Collins is the ideal complement to our Aerospace Systems business,” Chairman, CEO and President Gregory Hayes told analysts on a conference call. “We’ve been very impressed with the team at Collins and we look forward to bringing together two world-class organizations. We’re also confident that the combination of Aerospace Systems and Collins will create significant value for our customers as we develop aircraft systems that are more electric, more intelligent, more integrated and more connected.”
Hayes said UTC is also confident that the deal will boost its earnings in 2019, assuming it closes by the middle of 2018, and create long-term value for shareholders.
The results came out not long after the release of a shelf registration statement filing for the merger, which included a details of how the merger came to fruition.
Continue reading about the options Rockwell Collins considered. Full Insider story
CBJ Senior Business Reporter Dave DeWitte has previously performed contractual services for Rockwell Collins.