Aerospace conglomerate United Technologies is paying $30 billion to acquire Rockwell Collins in a deal that creates one of the world’s largest makers of civilian and defense aircraft components. Rockwell Collins and United’s Aerospace Systems segment will combine to create a new business unit named Collins Aerospace Systems.
United Technologies will pay $140 per share for Rockwell Collins shares; $93.33 in cash and $46.67 in stock. The $140 price represents a 17.6% premium for Rockwell shareholders.
“This acquisition adds tremendous capabilities to our aerospace businesses and strengthens our complementary offerings of technologically advanced aerospace systems,” said UTC’s chairman and CEO, Greg Hayes.
Both companies have subsidiaries involved in robotics, drones and marine systems but both derive most of their revenue from civilian and defense aerospace.
According to Reuters, “The deal also follows a wave of consolidation among smaller aerospace manufacturers in recent years that was caused in part by the need to invest in new technologies such as metal 3-D printing and connected factories to stay competitive. A combined United Technologies and Rockwell Collins could similarly invest, and their broad portfolios have little overlap.”