UTC subsidiary Pratt & Whitney PW1100G-JM engine. Photo courtesy of Pratt & Whitney
According to a report published by The Wall Street Journal Tuesday, United Technologies Corp. (UTC) is moving closer to a potential acquisition of Rockwell Collins. The report notes that UTC is “nearing a deal” to purchase Rockwell Collins for more than $20 billion.
The possibility of the acquisition of Rockwell Collins by UTC first emerged in early August, with a report from Bloomberg citing sources “familiar with the matter.” Now speculation has intensified, as Dow Jones Newswires has reported that the two companies are actively discussing a “a per-share price for Rockwell of $140 or less” and that an agreement could be completed as soon as the upcoming weekend.
Neither Rockwell Collins nor United Technologies has publicly commented on the matter.
During their second quarter earnings call in June, United Technologies CEO Greg Hayes said the OEM is considering spending $1 to 2 billion on mergers and acquisitions in 2017.
“We continue to have a placeholder at $1 billion to $2 billion for M&A this year. But as I said before, we will be opportunistic for the right deal,” Hayes said during the earnings call.
Analysts say the acquisition of Rockwell Collins would be the biggest acquisition ever completed in the history of the aerospace and defense manufacturing industry. Reuters compiled a list of the five largest acquisitions ever, including the following:
• United Technologies’ $18 billion takeover of Goodrich in 2011
• Boeing’s $15.3 billion purchase of McDonnell Douglas in 1996
• British Aerospace’s $12.9 billion acquisition of Marconi Electronic Systems in 1999
• Raytheon’s $9.5 billion takeover of Hughes Aircraft in 1997
• Lockheed Martin’s $9 billion purchase of Sikorsky in 2015
Rockwell Collins completed its own major acquisition earlier this year of aircraft seating and interior components supplier B/E Aerospace for $8.6 billion.