United Technologies mulls options for Sikorsky helicopter unit

United Technologies Corp (UTC) the $63-billion aerospace and defence contractor, is looking at options for its Sikorsky helicopter unit, one of the world's most popular military helicopter manufacturers, industry publication Defence News yesterday reported, citing unnamed sources.

Connecticut-based UTC  is considering whether to sell, spin off or forge a strategic merger for the manufacturer of the Black Hawk helicopters, the report said.

Of the options, divestiture or a tax-free spinoff are more likely than growth through acquisitions or mergers, the report added as analysts say that a sale or a merger would be too complicated but an IPO more likely.

Founded in Long Island, New York by Russian immigrant aircraft designer Igor Sikorsky in 1925, Sikorsky  is the world leader in the design, manufacture and service of military and commercial helicopters.

Sikorsky helicopters are used by all branches of the US armed forces, along with military services and commercial operators in 40 nations.

Core US military production programs are based on the Sikorsky H-60 aircraft, the Black Hawk helicopter for the US army and Seahawk helicopter for the US Navy.

Sikorsky is currently developing the next-generation CH-53K helicopter for the US marines.

Sikorsky also supplies helicopters for the use of the President of the US since 1957.

Over the past five years, the Pentagon has awarded $18 billion for Sikorsky helicopters, parts and services, making the company the leading rotorcraft provider to the US defence, the report said.

Sikorsky has a joint venture in India with Tata Advanced Systems for producing S-92 helicopter cabins and more than 5,000 aerospace components at two manufacturing facilities in Hyderabad.

Sikorsky generates around 10 per cent of UTC's $62.6 billion overall sales in 2012.