United Technologies Buying Goodrich Corp.
U.S. industrial conglomerate United Technologies Corp. (UTC) has agreed to acquire aerospace component manufacturer Goodrich Corp. in a deal valued at $18.4 billion, including $1.9 billion in assumed debt, the companies announced Sept. 22.
Hartford, Conn.-based UTC expects to raise both debt and equity financing to cover the deal, with the equity accounting for about 25 percent of the total. The deal is subject to approval by U.S. regulators and by shareholders of both companies.
Charlotte, N.C.-based Goodrich, with 2010 sales of $7 billion, is best known as a maker of landing gear and related hardware for military and civilian aircraft. But the company also has a space business that accounted for about $170 million in sales during the year. For example, Goodrich was prime contractor on the Pentagon’s Operationally Responsive Space (ORS)-1 imaging and surveillance satellite, which was launched in June and declared operational Sept. 16.
UTC’s space business includes propulsion provider Pratt & Whitney Rocketdyne and Hamilton Sunstrand, maker of spacesuits as well as satellite and launch vehicle components. Some $1.1 billion of UTC’s $54.3 billion in 2010 revenue is space related.
Once the deal closes, Marshall Larsen, now chairman and chief executive of Goodrich, will become chairman and chief executive of a consolidated UTC Aerospace Systems business unit based in Charlotte.