Nov. 3, 2015, 2:59 PM
- Lockheed Martin (LMT -0.6%) says it has received final regulatory approval from China for its $9B acquisition of Sikorsky Aircraft from United Technologies (UTX +0.8%), and expects the deal to close on Friday.
- Separately, Bloomberg reports LMT is exploring a sale of $600M in alternative assets to reduce exposure to P-E funds; the asset portfolio is said to be held by a subsidiary that manages employees’ post-retirement plans, and a deal may be completed by year-end.
- S&P downgraded LMT’s debt rating on Monday, citing its "expectation of a significant deteriorating in Lockheed’s forecasted credit metrics” as the company continues returning excess cash to shareholders despite the debt-financed acquisition of Sikorsky.
Oct. 15, 2015, 4:51 AM
- According to Reuters sources, Lockheed Martin's (NYSE:LMT) purchase of Sikorsky Aircraft from United Technologies (NYSE:UTX) could close by late October or early November, well before the initial year-end target.
- Lockheed announced last month that officials in the U.S., South Korea and Japan had cleared the $9B acquisition, but was still waiting for other regulatory approvals.
- China and the European Union are expected to support the deal next week.
Sep. 24, 2015, 9:51 AM
- U.S. officials have approved Lockheed Martin's (LMT -1.3%) $9B takeover of United Technologies' (UTX -1.3%) Sikorsky Aircraft unit.
- Authorities in Japan and South Korea previously cleared the deal, but the company is still waiting for other regulatory approvals.
- Multiple sources say Lockheed is now likely to close the acquisition well before the end of 2015, as initially expected.
Aug. 20, 2015, 12:21 PM
- The WSJ reports United Technologies (UTX -1.6%) is in talks to buy HVAC/air quality/security system maker Nortek (NASDAQ:NTK).
- Nortek spiked higher on the report before getting halted.
- Update (12:23PM ET): Nortek has resumed trading, and is now up 17.6%.
- Update 2 (12:35PM ET): The full story is up. No potential deal price is given.
Jul. 20, 2015, 12:49 PM
- Lockheed Martin (LMT +1.9%) hit a "trifecta" today following the announcement of its $9B purchase of Sikorsky Aircraft from United Technologies (UTX -0.7%), according to the analyst team at UBS.
- The deal cements LMT's dominance in weapons making and opens key foreign markets for the company, which has annual revenues of $45B; analysts do not expect antitrust objections since LMT does not build helicopters.
- LMT also announced a strategic review of a large portion of its government IT and services portfolio for a potential sale or spinoff.
- Also, LMT's Q2 results came in well ahead of consensus, with 3% revenue growth well ahead of the UBS forecast for a 6% decline and 12% margins coming in 30 bps better than expected.
- UTX shares also are worth buying, according to Sterne Agee CRT analyst Peter Arment, who says the Sikorsky sale is a "positive first step" in the transformation of its business portfolio and allows the company to return a large amount of cash to shareholders without reducing balance sheet flexibility; while Sikorsky generated ~10% of UTX sales, it only accounted for 6.5% of its profits.
Jul. 20, 2015, 1:42 AM
- Lockheed Martin (NYSE:LMT) has agreed to buy United Technologies' (NYSE:UTX) Sikorsky Aircraft for over $8B, Reuters reports, cementing a deal that would give the Black Hawk helicopter to the maker of the F-35 fighter jet.
- The acquisition of Sikorsky, which had more than 15K employees and net sales of $7.5B at the end of last year, would be the biggest by Lockheed since its $10B takeover of Martin Marietta two decades ago.
- Pentagon officials said last week they would carefully evaluate any sale to maintain competition and avoid market distortions.
Jul. 8, 2015, 6:43 PM
- Lockheed Martin (NYSE:LMT) and Textron (NYSE:TXT) have emerged as final contenders to buy United Technologies' (NYSE:UTX) Sikorsky Aircraft unit, which could be valued at ~$8B, Reuters reports.
- UTX reportedly is weighing offers from the two companies and may come to a decision by the end of the month, but it still could decide against an outright sale and instead spin off Sikorsky to shareholders in a tax-free deal.
- TXT, whose ~$12B market cap is only one fifth the size of LMT's $60B, is said to have reached out to P-E firms to put together a cash bid.
- Boeing (NYSE:BA), which had expressed interest in a potential deal, is no longer active in the sale process, and Airbus (OTCPK:EADSF, OTCPK:EADSY) is not in the running, according to the report.
- UTX +1.5% AH.
Jun. 10, 2015, 2:38 AM
- After receiving several offers, United Technologies' (NYSE:UTX) board of directors is scheduled to meet later this week to review the options for its $8B Sikorsky aircraft business.
- UTC is considering two tax-efficient transactions for Sikorsky: a spin-off or combination with peer Textron (NYSE:TXT).
- Alternatively, Sikorsky may be sold outright to another company. Lockheed Martin (NYSE:LMT), Boeing (NYSE:BA) and Airbus (OTCPK:EADSY) have all expressed interest.
May 19, 2015, 6:51 PM
- United Technologies (NYSE:UTX) is talking to potential buyers for its Sikorsky Aircraft business, WSJ reports, raising the prospect that a spinoff could turn into a sale.
- Boeing (NYSE:BA), Airbus (OTCPK:EADSF, OTCPK:EADSY) and Lockheed Martin (NYSE:LMT) reportedly are among the companies exploring bids or a potential minority stake in the helicopter maker.
- Analysts estimate Sikorsky could fetch ~$10B in a full sale.
Mar. 13, 2015, 3:52 AM
- Since the beginning of the year, United Technologies (NYSE:UTX) approached several companies about acquiring Sikorsky, CEO Greg Hayes said at the company's investor meeting yesterday, although it quickly became clear that a sale would be "very hard" due to the unit's heavy tax liability.
- "The business is growing too slowly and is overly dependent on Defense Department contracts," he added.
- United Tech said on Wednesday it was exploring alternatives for Sikorsky, including a potential spinoff.
- Previously: United Tech's Sikorsky asset could be worth $7B-$8.5B, analyst says (Mar. 12 2015)
- Previously: United Tech CEO sheds light on possible Sikorsky spinoff (Mar. 12 2015)
- UTX +0.2% AH
Jul. 18, 2013, 10:09 AM
Talks about diversification: Washington Post (WPO) agrees to acquire Forney, a provider of products and systems for power and industrial boilers, from United Technologies (UTX) for an undisclosed amount. The deal adds to Washington Post's purchase last year of Celtic Healthcare and is part of the company's "ongoing strategy to invest in companies with "demonstrated earnings potential and strong management teams." Which sounds right out of the playbook of long-time Washington Post shareholder Warren Buffett. (PR)| Jul. 18, 2013, 10:09 AM
Jan. 18, 2013, 4:08 PM
United Technologies (UTX +0.5%) finishes the day in the green after announcing earlier that it's reached an agreement to sell its former Goodrich pump and engine control systems business to Triumph Group (TGI +3.8%). The deal is expected to close in Q113. The sale of the unit was one of the divestitures required by regulatory authorities as a condition of UTX's acquisition of Goodrich Corporation.| Jan. 18, 2013, 4:08 PM
Dec. 6, 2012, 5:20 PM
United Technologies (UTX) terminates its agreement to sell its pump and engine control systems business to TransDigm (TDG), citing DoJ objections to the transaction. Sale of the pump and engine control systems unit is one of the divestitures required as a condition of UTX's acquisition of Goodrich Corporation. UTX intends to comply with its obligation to sell the business to a buyer acceptable to the DoJ and European Commission. Any proposed transaction continues to be subject to regulatory approvals in the U.S. and other jurisdictions.| Dec. 6, 2012, 5:20 PM
Oct. 25, 2012, 3:55 PM
Oct. 16, 2012, 7:15 AM
Oct. 5, 2012, 5:24 PM
GenCorp (GY) and United Technologies (UTX) have received requests for additional information from the FTC in connection with GY's proposed acquisition of the Rocketdyne division of UTX. The requests extend the waiting period during which the parties may not close the acquisition until 30 days after both companies have complied with the requests. GY now expects to close the acquisition in H113.| Oct. 5, 2012, 5:24 PM