Business & GA, Commercial, Military

Lockheed Seals the Deal on Sikorsky Acquisition

By Juliet Van Wagenen | July 20, 2015
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S-76D Sikorsky helicopter
S-76D Sikorsky helicopter. Photo: Sikorsky Photo by Ned Dawson

[Avionics Today 07-20-2015] Lockheed Martin is set to acquire helicopter-manufacturer Sikorsky Aircraft from United Technologies Corp. (UTC) at $9 billion — a price effectively reduced to approximately $7.1 billion, after taking into account tax benefits resulting from the transaction. The acquisition is subject to customary conditions, including securing regulatory approvals, and is expected to close by late fourth quarter 2015 or early first quarter 2016.

According to a statement released by the companies, the transaction will have no impact on Sikorsky’s previously stated commitments to return cash to shareholders through dividends and to reduce outstanding share count to below 300 million shares by the end of 2017. The company plans to align Sikorsky under the Lockheed Martin Mission Systems and Training (MST) business segment. MST and Sikorsky currently partner on a number of programs, including the VH-92 Presidential Helicopter, Combat Rescue Helicopter, and the Naval MH-60 Helicopter.

Separately, Lockheed Martin will conduct a strategic review of alternatives for its government IT and technical services businesses, primarily in the Information Systems & Global Solutions business segment, and a portion of the Missiles and Fire Control business segment. The programs Lockheed Martin will review represent roughly $6 billion in estimated 2015 annual sales and more than 17,000 employees.

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