© pichetw dreamstime.com Electronics Production | June 10, 2019
Raytheon & United Technologies Aerospace to become one
Raytheon and United Technologies have entered into an agreement to combine in an all-stock merger of equals.
The combined company of Raytheon and United Technologies, comprised of Collins Aerospace and Pratt & Whitney, will create a systems provider with advanced technologies to address growing segments of aerospace and defense. The company will be named Raytheon Technologies Corporation and will offer expanded technology and R&D capabilities. The combination excludes Otis and Carrier, which are expected to be separated from United Technologies in the first half of 2020 as previously announced, a press release reads. The combined company will have approximately USD 74 billion in pro forma 2019 sales. With a strong balance sheet and robust cash generation. Under the terms of the agreement – which has been unanimously approved by the Boards of Directors of both companies – Raytheon shareowners will receive 2.3348 shares in the combined company for each Raytheon share. Upon completion of the merger, United Technologies shareowners will own approximately 57% and Raytheon shareowners will own approximately 43% of the combined company. The merger is expected to close in the first half of 2020, following completion by United Technologies of the previously announced separation of its Otis and Carrier businesses.