United Technologies Corp. (UTC) announced late Sept. 21 that it has reached an agreement to purchase Goodrich Corp. for $18.4 billion. UTC Chairman and CEO Louis Chênevert could not address the AOPA Aviation Summit opening keynote session Sept. 22 because of the pending transaction. Pratt & Whitney President David Hess, who addressed the standing-room-only audience for Chênevert, confirmed the deal.
UTC is purchasing Goodrich for $127.50 per share in cash, the companies said. Adding $1.9 billion in net debt that will be assumed yields a total enterprise value of $18.4 billion. UTC said it plans to finance 25 percent of the transaction with equity and the balance through debt. The closing is subject to customary closing conditions, including regulatory and Goodrich shareholder approvals.
"Goodrich delivers on all of our acquisition criteria. It is strategic to our core, has great technology and people, and strengthens our position in growth markets," Chênevert said in a press release. "We are very excited to bring the capabilities of two great companies together, making us more competitive and better able to provide value to both customers and shareholders."
"Our combination with United Technologies is a testament to our employees and will enable us to shape the future of aerospace through continued innovation, increased global scale and the best talent in the industry," said Marshall Larsen, chairman, president, and CEO of Goodrich. “Importantly, United Technologies has a similar culture of mutual trust and respect, accountability and teamwork."
UTC said that following completion of the transaction, it expects to have worldwide sales of approximately $66 billion based on projected 2011 results. It said the acquisition will strengthen the company’s position in the aerospace and defense industry.
Goodrich is a global supplier of systems and services to the aerospace and defense industry. Its products include aircraft landing gear, aircraft wheels, and brakes. Goodrich, with estimated 2011 sales of $8 billion, serves a global customer base with 27,000 employees worldwide.