Goodrich agrees to merge with UTC in $18.4-bn cash deal
22 Sep 2011
Aircraft components maker Goodrich Corp today aqgreed to be acquired by defence contractor United Technologies Corp (UTC), a maker of equipments for the aerospace industry and the military, in an $18.4-billion cash deal, including the assumption of $1.9 billion debt.
If the deal materialises, Goodrich would be UTC's largest acquisition since 2000, when its attempt to buy Honeywell International was foiled by General Electric's $45-billion offer.
Though this match was rejected by the European Union regulator, UTC, however, did not rebid.
The Goodrich deal, which was last week reported to be in the making by CNBC, (See: United Technologies in talks to acquire rival Goodrich in $11 bln deal: report) involves Hartford, Connecticut-based UTC paying $127.50 a share in cash for Goodrich, a16-per cent premium over Goodrich's closing price of $109.49 yesterday.
UTC said that it expects to finance the deal through a combination of debt and by issuing stock. The equity component of the deal is expected to be about 25 per cent of the transaction, the company said in a statement.
Post-closing of the deal, UTC is expected to have global sales of approximately $66 billion, based on projected 2011 results.