Sunday , 15 September 2019
Home >> Aircraft >> Lockheed Martin to accuire Sikorsky

Lockheed Martin to accuire Sikorsky

United Technologies has announced that it has reached an agreement to sell Sikorsky Aircraft to Lockheed Martin for $9 billion in cash. The transaction, which is subject to regulatory approvals and customary closing conditions and adjustments, is projected to close by year-end or in the first quarter of 2016. Proceeds from the sale are expected to be used to fund additional share repurchase to offset the earnings impact related to the sale.

Gregory Hayes, President and Chief Executive Officer, UTC

“We are very pleased to announce this transaction, Exiting the helicopter business will allow UTC to better focus on providing high-technology systems and services to the aerospace and building industries and to deliver improved and sustained value to our customers and shareowners.
Sikorsky’s acquisition by Lockheed Martin, one of the world’s leading aerospace and defense companies, will ensure it remains a technology leader at the forefront of vertical lift, We are committed to working closely with Lockheed Martin to execute a seamless transition for customers and employees.”

UTC’s Board of Directors has authorized a share repurchase program for up to 75 million shares of the company’s common stock, which would be worth approximately $8.3 billion based on the NYSE closing price of UTC shares on July 17. The new authorization replaces a previous program, approved in February 2013, which was nearing completion. The precise timing and amount of repurchases will be determined based on the company’s evaluation of market conditions and other factors, and the program may be suspended or discontinued at any time.
J.P. Morgan Securities LLC is serving as UTC’s financial advisor, and Wachtell, Lipton, Rosen & Katz as its legal advisor for the sale.

About Vedant Agarwal

A frequent flyer for both work and pleasure - Vedant has held elite status on many of the major alliances and airlines. Also an avid aviation photographer, his pictures have been published in and on the covers of many international publications.

Check Also

The CFM LEAP engine powering the retro livery Tata SIA Airlines Vistara Airbus A320neo. Image copyright Devesh Agarwal. Used with permission.

The engines that power Indian aviation

Indian aviation has been on a growth path. With demand growing by leaps and bounds, …

PARIS 2019: Mitsubishi announces first order for SpaceJet M100

Mitsubishi Aircraft Corporation has announced that it has signed a Memorandum of Understanding (MoU) for …