With the successful acquisition of Rockwell Collins, United Technologies Corp. (United Technologies) has announced its intention to divide up its commercial businesses into three major companies – United Technologies, Carrier and Otis.
Carrier will produce HVAC, refrigeration, building automation, fire safety and security products, while Otis will manufacture elevators, escalators and moving walkways.
United Technologies will comprise Collins Aerospace Systems and Pratt & Whitney. Collins Aerospace Systems is a new company created through the acquisition of Rockwell Collins which, according to United Technologies “is one of the largest [acquisitions] in aerospace history. It brings together Rockwell Collins and UTC Aerospace Systems to create Collins Aerospace Systems, an industry leader with a global presence of 70,000 employees in 300 sites and US$23 billion in annual sales on a 2017 pro forma basis.”
According to United Technologies Chairman and Chief Executive Officer Gregory Hayes, “Collins Aerospace brings together two great companies with unmatched expertise in developing electrical, mechanical and software solutions. We will have a laser focus on developing innovative solutions for customers and generating strong returns for shareowners.”
United Technologies will be the preeminent systems supplier to the high-growth commercial aerospace and defense industry, with a unique portfolio of technologies and scale to invest through economic cycles. Combined sales of the two businesses totaled US$39.0 billion in 2017 on a pro forma basis.
Collins Aerospace Systems will supply electrical, mechanical and software solutions across all major segments of the aerospace industry and serves commercial and military customers. Pratt & Whitney is a global leader in aircraft propulsion with a growing number of engine programs including the revolutionary Geared TurbofanTM commercial engine and the F135 military engine for the F-35 Joint Strike Fighter program.
