HARTFORD, Conn., July 20, 2015 /PRNewswire/ -- United Technologies
Corp. (NYSE: UTX) today announced that it has reached an agreement
to sell its Sikorsky Aircraft business to Lockheed Martin Corp.
(NYSE: LMT) for $9 billion in cash.
The transaction, which is subject to regulatory approvals and
customary closing conditions and adjustments, is projected to close
by year-end or in the first quarter of 2016. Proceeds from the sale
are expected to be used to fund additional share repurchase to
offset the earnings impact related to the sale.
"We are very pleased to announce this transaction," said UTC
President and Chief Executive Officer Gregory Hayes. "Exiting the helicopter business
will allow UTC to better focus on providing high-technology systems
and services to the aerospace and building industries and to
deliver improved and sustained value to our customers and
shareowners.
"Sikorsky's acquisition by Lockheed Martin, one of the world's
leading aerospace and defense companies, will ensure it remains a
technology leader at the forefront of vertical lift," Hayes added.
"We are committed to working closely with Lockheed Martin to
execute a seamless transition for customers and employees."
The company will discuss this transaction at its previously
scheduled conference call with investors and analysts at
8:30 a.m. EDT, Tuesday, July 21, following release of UTC's
quarterly financial results. A corresponding presentation will be
available prior to the call on the company's website at
http://www.utc.com.
In addition, UTC's Board of Directors has authorized a share
repurchase program for up to 75 million shares of the company's
common stock, which would be worth approximately $8.3 billion based on the NYSE closing price of
UTC shares on July 17. The new
authorization replaces a previous program, approved in February 2013, which was nearing completion. The
precise timing and amount of repurchases will be determined based
on the company's evaluation of market conditions and other factors,
and the program may be suspended or discontinued at any time.
J.P. Morgan Securities LLC is serving as UTC's financial
advisor, and Wachtell, Lipton, Rosen & Katz as its legal
advisor for the sale.
United Technologies Corp., based in Hartford, Connecticut, provides high
technology systems and services to the building and aerospace
industries.
This release includes "forward looking statements" concerning an
anticipated transaction, its financial and business impact,
management's beliefs and objectives with respect thereto, the
anticipated use of proceeds and management's current expectations
for our future operating and financial performance, based on
assumptions currently believed to be valid. Forward-looking
statements can be identified by the use of words such as "believe,"
"expect," "plans," "strategy," "prospects," "estimate," "project,"
"target," "anticipate," "will," "should," "see," "guidance,"
"confident" and other words of similar meaning in connection with a
discussion of future operating or financial performance. It is
uncertain whether the transaction announced will transpire, and if
it is completed, what impact it will have on UTC's results of
operations and financial condition. These forward looking
statements involve significant risks and uncertainties that could
cause actual results to differ materially from those anticipated,
including, but not limited to, the ability of the parties to
satisfy the conditions precedent and consummate the anticipated
transaction; the timing of consummation of the transaction; the
ability of the parties to secure regulatory approvals in a timely
manner or on the terms desired or anticipated; the ability to
implement the anticipated business plans following closing and
achieve anticipated benefits and savings; future and estimated
sales, earnings, cash flow, charges and expenditures; the
timing and scope of anticipated share repurchases; the anticipated
benefits of organizational changes, and the ability to realize
opportunities for growth and innovation. The level of share
repurchases depends on market conditions and the level of other
investing activities and uses of cash. Other important economic,
political, regulatory, legal, technological, competitive and other
uncertainties are identified in the SEC filings submitted by UTC
from time to time, including its Quarterly Reports on Form 10-Q,
Annual Reports on Form 10-K, and Current Reports on Form 8-K. The
forward looking statements included in this press release are made
only as of the date hereof. UTC undertakes no obligation to update
the forward looking statements to reflect subsequent events or
circumstances.
Contact: John Moran
(860) 728-7062
UTC-IR
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SOURCE United Technologies Corp.