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  • UTC & Raytheon to Combine in Merger of Equals


    UTC & Raytheon to Combine in Merger of Equals

    Fri 14, Jun 2019

    Raytheon Company and United Technologies Corp. have declared that they will merge in what has been dubbed as the Merger of Equals. The union will create a premier systems provider with advanced technologies to address quickly emerging sections of aerospace and defense.

    Greg Hayes, United Technologies Chairman and CEO said that “The combination of United Technologies and Raytheon will define the future of aerospace and defense.” Notable short- and long-term gains are expected from uniting complementary portfolios, resulting in more than $1 billion of gross annual cost synergies by year four, as well as new revenue possibilities from combined technology.

    The merger is expected to close in the first half of 2020, and the combined company, which will be named Raytheon Technologies Corporation. The merger will offer augmented technology and R&D capabilities to deliver innovative and cost-effective solutions tailored to customer priorities and the national defense strategies of the U.S. and its allies. The new organization excludes Otis and Carrier, which are expected to be separated from United Technologies in the first half of 2020 as announced earlier.

    The joined organization will have around $74 billion in pro forma 2019 sales. With a solid balance sheet and healthy cash flow, Raytheon Technologies will enjoy improved assets and budgetary plasticity to fund massive R&D and capital investments through business cycles.

    After the deal is completed United Technologies shareowners will own approximately 57 percent, and Raytheon shareowners will own roughly 43 percent of the new company on a fully diluted basis.

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    News Source: UTC



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