Lockheed Martin Said to Agree on Acquisition of SikorskyAlex Sherman and Richard Clough
Lockheed Martin Corp. agreed to buy United Technologies Corp.’s Sikorsky unit, adding the largest maker of military helicopters to a lineup that includes warplanes and missiles, according to a person familiar with the talks.
The transaction is scheduled to be announced Monday, said the person, who asked not to be identified because the matter isn’t public yet. Sikorsky had sales of about $7.45 billion last year, and Reuters reported earlier today the price will exceed $8 billion.
With a deal, Lockheed would extend its status as the world’s largest defense contractor and widen its lead over Boeing Co. in the U.S. It would be the biggest aerospace acquisition since 2012, when United Technologies bought Goodrich Corp. for more than $16 billion, according to data compiled by Bloomberg.
John Moran, a spokesman for United Technologies, and Dan Nelson, a spokesman for Lockheed Martin, declined to comment.
For United Technologies, the sale caps a review started after Chief Executive Officer Gregory Hayes was appointed to his job in November. Cutting ties to Sikorsky will let the company focus on divisions making jet engines, air conditioners and elevators while exiting the very different business of supplying rotary-wing aircraft to the U.S. and foreign armed forces.
Lockheed Martin rose 0.2 percent to the equivalent of $201.50 in German trading on Monday, with 477 shares changing hands. United Technologies shares gained 0.5 percent to the equivalent of $111.29, in trading of 208 shares.
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