United Technologies Corp. has announced the completion of its acquisition of Rockwell Collins and says 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, comprising 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.
“Our decision to separate United Technologies is a pivotal moment in our history and will best position each independent company to drive sustained growth, lead its industry in innovation and customer focus, and maximise value creation,” said United Technologies Chairman and Chief Executive Officer Gregory Hayes.
“Our products make modern life possible for billions of people. I’m confident that each company will continue our 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 our customers’ biggest challenges, provide rewarding career opportunities, and contribute positively to communities around the world.”
UTC’s acquisition of Rockwell Collins is one of the largest in aerospace history.
It brings together Rockwell Collins and UTC Aerospace Systems to create Collins Aerospace Systems, 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.
“Collins Aerospace brings together two great companies with unmatched expertise in developing electrical, mechanical and software solutions,” said Hayes.
“We will have a laser focus on developing innovative solutions for customers and generating strong returns for shareowners.”