United Technologies to buy Goodrich in $18.4 bn deal

In a move that would bolster its global presence in the aerospace and defence industry, United Technologies will snap up Goodrich Corp in a $18.4 billion deal.

United Technologies is a diversified group and its offerings include aerospace systems and Otis elevators. A supplier of systems and services to the aerospace and defence industry, Goodrich's products include aircraft landing gear, aircraft wheels and brakes.

Both the companies have presence in India.

United Technologies in a statement yesterday said it would acquire Goodrich for $127.50 per share in cash.

"This equates to total enterprise value of $18.4 billion, including $1.9 billion in net debt assumed," it noted.

Once the transaction is complete, United Technologies is expected to have worldwide sales of about $66 billion, based on projected 2011 results.

The combined company's increased scale, financial strength and complementary products will strengthen United Technologies' position in the aerospace and defence industry, the statement said.

"We are very excited to bring the capabilities of two great companies together, making us more competitive and better able to provide value to both customers and shareholders," United Technologies Chairman and CEO Louis Chênevert said.

Goodrich Chairman President and CEO Marshall Larsen would become Chairman and CEO of a combined UTC Aerospace Systems business unit.