Rockwell Collins to Vote on UTC Merger in January

Photo courtesy of Rockwell Collins

Rockwell Collins share owners will have the opportunity to provide their vote on the proposed $30 billion merger with United Technologies Corp. (UTC) Jan. 11, 2018. According to a proxy statement submitted to the U.S. Security and Exchange Commission (SEC) by Rockwell Collins, the special meeting in January will allow share owners to vote on several financial and  aspects related to the merger.

The meeting is the result of the agreement reached in September for UTC to acquire Rockwell Collins for an “implied” total equity value of $23 billion and a total transaction value of $30 billion, including Rockwell Collins’ net debt. Under the proposed merger, Kelly Ortberg would retain his status as CEO, with UTC Aerospace Systems President Dave Gitlin becoming president and COO.

In January, share owners will vote on three specific aspects related to the merger, including the adoption of the merger agreement itself, merger-related compensation and postponement of a special meeting to a later date, if necessary.

Analysts believe the acquisition of Rockwell Collins by UTC would be the biggest acquisition ever completed in the history of the aerospace and defense manufacturing industry. UTC was also involved in the industry’s second largest acquisition, when it acquired Goodrich in 2011.

UTC estimates that the acquisition would generate more than $500 million in run-rate pre-tax cost synergies by year four. The Farmington, Connecticut-based company also estimates annual global sales of $67 to $68 billion if the acquisition is completed.

Rockwell Collins’ board of directors has already approved the acquisition, the company said in the proxy statement.

The acquisition would also bring aircraft seating and interior components supplier B/E Aerospace into the UTC portfolio, after Rockwell Collins completed the acquisition of the company for $8.6 billion earlier this year.

Receive the latest avionics news right to your inbox