The largest manufacturer of avionics, Rockwell Collins will buy for $ 30 billion
Two leading players in the aviation equipment suppliers market have announced a deal in which UTC is acquiring Rockwell Collins shares for $ 30 billion, including a company's net debt of $ 7 billion, reports Reuters.
Under the terms of the agreement, UTC will pay $ 140 per share of Rockwell Collins. Of this amount, $ 93.33 will be paid in cash and $ 46.67 in shares of United Technologies Corp. UTC’s interest in Rockwell Collins has been on the market since the beginning of the year. During this period, the manufacturer's shares have risen in total by 40%.
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As participants in the transaction told , after the transaction, United Tech’s sales could reach $ 67– $ 68 billion. For comparison, Boeing’s figure is $ 95 billion.
According to Reuters, this transaction became possible, including due to the behavior of the two largest aircraft manufacturers Boeing Co. and Airbus Group SE. Both giants are trying to increase profits at the expense of suppliers and push those to lower prices. Also in July, Boeing announced its intention to create its own company for the production of electronic aviation equipment, which would be a threat to Rockwell Collins. And last week, Airbus representatives called on UTC to fix industrial problems that were delaying new shipments of aircraft.
According to analysts, the purchase of shares of Rockwell Collins could significantly increase the influence of United Technologies in the business of supplying components and will become an additional lever to withstand pressure from Airbus and Boeing.
This purchase also continues the wave of consolidation among manufacturers of aviation components. At the beginning of the year, the French supplier of aircraft engines Safran agreed to purchase the manufacturer Zodiac for 8.7 billion euros. Then Rockwell Collins absorbed the company B / E Aerospace, which produced interior items for the salons and sanitary facilities of the aircraft, for $ 8.6 billion. The deal between Rockwell Collins and UTC will be the third this year. It is reported that the parties spent a month trying to reach an agreement.
The purchase should be completed in the third quarter of 2018. After that, UTC plans to create a new business unit of Collins Aerospace Systems. Rockwell Collins CEO Kelly Ortberg will head it, and Dave Gitlin, who now heads UTC Aerospace Systems, will be President and Chief Operating Officer. The company will develop technological equipment for the new generation of intelligent aircraft. Company representatives report that this transaction will save more than $ 500 million in the fourth year after purchase.
It will be the most expensive deal in the history of the aviation industry. For the time being, Goodrich ($ 16.5 billion) is in first place in terms of the transaction amount. It is noteworthy that its shares also acquired UTC.
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Source: https://habr.com/ru/post/337268/
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