United Technologies (UTC) is splitting into three separate companies after completing its US$30 billion acquisition of Rockwell Collins.
UTC will spin off its Otis and Carrier businesses by 2020 and concentrate on the new business formed by engine maker Pratt & Whitney and Collins Aerospace Systems, the company created through the merger of Rockwell Collins and UTC Aerospace Systems. UTC says that the combined Collins Aerospace and Pratt & Whitney businesses had total sales of $39 billion in 2017 on a pro-forma basis.
Upon separation, it says, each company will have the strategic focus and financial flexibility to deliver innovative customer solutions and drive long-term value. United Technologies will be the pre-eminent systems supplier to the aerospace and defence industry, it added.
UTC chairman and CEO, Gregory Hayes, said: “Our decision to separate United Technologies is a pivotal moment in our history and will best position each independent company to drive sustained growth, lead its industry in innovation and customer focus, and maximise value creation.”
Collins Aerospace supplies 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 Geared Turbofan commercial engine and the F135 military engine for the F-35 Joint Strike Fighter programme.
Hayes will oversee the transition and continue in his current role as UTC chairman and CEO following the separation, which is expected to be completed in 2020, with separation activities occurring over the next 18-24 months.
UTC currently anticipates sales of $64.5-$65 billion, up from $64-$64.5 billion for this year.