United Tech to Acquire Goodrich at $16.5 billion

Reuters23.09.2011 North America
United Tech to Acquire Goodrich at $16.5 billion

United Tech to Acquire Goodrich at $16.5 billion

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United Technologies Corp has reached a $16.5 billion cash deal to acquire aircraft components maker Goodrich Corp, in the diversified US manufacturer's biggest deal in a decade.


United Tech said it would pay $127.50 a share for Goodrich, a 47% premium over the stock's closing price earlier this week.

If completed, the deal would be the US manufacturer's largest takeover in a decade. It also includes $1.9 billion in assumed debt.

It would boost United Tech's presence in the commercial aviation business, as Goodrich supplies a host of parts to both Boeing and European aerospace conglomerate EADS' Airbus division.

It also supplies parts for Hartford, Connecticut-based United Tech's Pratt & Whitney jet engines and Hamilton Sundstrand's aircraft electronics.

It would be a big move for United Tech's Chief Executive Louis Chenevert, who had long said he was interested in doing more deals but was having a hard time coming to terms with targets on price.

 

Source: Reuters

 
 

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