Goodrich accepted a deal from United Technologies UTX, a maker of aircraft components, for about $16.5bn in cash in a move.
The deal is the largest acquisition made by UTX since Louis Chenevert took over as chief executive in 2008. Historically it is also one of the largest acquisitions made by UTX since its inception.
as per Jeremy Lemer in New York
"Analysts said the deal would push UTC’s aerospace revenues back to more than half of its total sales and would help revitalise its portfolio just as the sector begins a sustained production ramp-up. The company will have combined revenues of about $66bn in 2011.
Goodrich, based in Charlotte, North Carolina, makes landing gear and other components, while UTC makes helicopters, aircraft engines and building products such as lifts and air conditioning units.
The acquisition sets UTC on a different tack from many of its peers. In recent months, a number of other conglomerates have split themselves up as a way to drive up their share prices and expose undervalued units.
Mr Chenevert said: “What puts these other conglomerates in a tough position is that they lose their way, they are not focused on what made them a success. UTC keeps adding where we are successful.”
UTC will pay $127.50 a share in cash for Goodrich and incur deal costs of $500m. The price represents a steep premium over the share price before rumours of the deal first leaked."
"
We are on the eve of a substantial ramp-up" for the commercial aviation industry, Mr. Chênevert said in an interview. "With the addition of Goodrich we really strengthened our aerospace position."
United Technologies will also assume $1.9 billion in Goodrich net debt.
Goodrich will be combined with Hamilton Sundstrand in a new unit that will be based in Goodrich's hometown of Charlotte, N.C., and run by Goodrich CEO Marshall Larsen. After the deal, nearly half of United Technologies' revenue will come from aerospace.
This is still not a done deal like everyone is making it sound, the next month will have lots to say. In the Past european antitrust laws have stopped similar acquisition between GE
The deal is the largest acquisition made by UTX since Louis Chenevert took over as chief executive in 2008. Historically it is also one of the largest acquisitions made by UTX since its inception.
as per Jeremy Lemer in New York
"Analysts said the deal would push UTC’s aerospace revenues back to more than half of its total sales and would help revitalise its portfolio just as the sector begins a sustained production ramp-up. The company will have combined revenues of about $66bn in 2011.
Goodrich, based in Charlotte, North Carolina, makes landing gear and other components, while UTC makes helicopters, aircraft engines and building products such as lifts and air conditioning units.
The acquisition sets UTC on a different tack from many of its peers. In recent months, a number of other conglomerates have split themselves up as a way to drive up their share prices and expose undervalued units.
Mr Chenevert said: “What puts these other conglomerates in a tough position is that they lose their way, they are not focused on what made them a success. UTC keeps adding where we are successful.”
UTC will pay $127.50 a share in cash for Goodrich and incur deal costs of $500m. The price represents a steep premium over the share price before rumours of the deal first leaked."
"
We are on the eve of a substantial ramp-up" for the commercial aviation industry, Mr. Chênevert said in an interview. "With the addition of Goodrich we really strengthened our aerospace position."
United Technologies will also assume $1.9 billion in Goodrich net debt.
Goodrich will be combined with Hamilton Sundstrand in a new unit that will be based in Goodrich's hometown of Charlotte, N.C., and run by Goodrich CEO Marshall Larsen. After the deal, nearly half of United Technologies' revenue will come from aerospace.
This is still not a done deal like everyone is making it sound, the next month will have lots to say. In the Past european antitrust laws have stopped similar acquisition between GE