Rockwell Collins sold for $30-billion to United Technologies - KWWL - Eastern Iowa Breaking News, Weather, Closings

Rockwell Collins sold for $30-billion to United Technologies

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CEDAR RAPIDS (KWWL) -

Rockwell Collins has been sold for $30-billion to United Technologies.  According to a release on the company's website, the two companies reached an agreement on Monday.

Rockwell Collins specializes in aviation and solutions for commercial and military customers.  United Technologies is based in Farmington, Connecticut. 

Rockwell Collins has 30,000 employees worldwide and had more than $5-billion in sales last year.  The company was founded back in 1933 by Arthur Collins.

The two companies will be forming Collins Aerospace Systems.  It is expected to have about 70,000 employees and generate about $23-billion in revenue.

“This acquisition adds tremendous capabilities to our aerospace businesses and strengthens our complementary offerings of technologically advanced aerospace systems,” said UTC Chairman and Chief Executive Officer Greg Hayes. “Together, Rockwell Collins and UTC Aerospace Systems will enhance customer value in a rapidly evolving aerospace industry by making aircraft more intelligent and more connected.”

“The integrated companies’ expertise in developing electrical, mechanical and software solutions will allow us to deliver more innovative products and services and provide greater value to our customers and shareowners,” Hayes continued. “This combination will also create new opportunities for the talented employees of both companies to advance innovation in a growing and dynamic industry. Importantly, UTC and Rockwell Collins share cultures of mutual trust and respect, accountability and teamwork that will allow us to work together to achieve our common goals.”

“We are extremely pleased to announce this compelling transaction with UTC which is a testament to the value we have created for Rockwell Collins’ employees, customers and shareowners,” said Kelly Ortberg, Chairman, President and Chief Executive Officer of Rockwell Collins. “The combination will enable us to compete more effectively for future business through continued investments in innovation, world-class integrated product offerings and the ability to retain the top talent in the industry. We look forward to the next chapter in Rockwell Collins’ long and proud history, as part of UTC.”

According to the agreement, each Rockwell Collins share owner will receive $93.33 per share in cash and $46.67 in shares of UTC common stock.

More can be read about the agreement here.

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