Summary Box: United Technologies to buy Goodrich

AP News
Posted: Sep 22, 2011 12:20 PM
Summary Box: United Technologies to buy Goodrich

BUYOUT DEAL: United Technologies Corp. has agreed to buy aerospace manufacturer Goodrich Corp. in a cash deal worth about $16.4 billion.

TERMS: The Hartford, Conn. company is paying $127.50 a share in cash for Goodrich. Based on Goodrich's outstanding shares and securities that can be converted into common stock, the offer is worth about $16.4 billion. United Technologies said it would also assume $1.9 billion in debt.

The company said it expects to finance the deal through a combination of debt and by issuing stock. The equity component of the deal is expected to be about 25 percent of the transaction.

OUTLOOK: United Technologies said it will form an aerospace business unit that will be based in Charlotte and led by Goodrich Chairman, President and CEO Marshall Larsen.

With the addition of Goodrich, United Technologies expects its global sales to total about $66 billion this year. A little less than half of the sales will come from aerospace.

The deal is also expected to boost the industrial conglomerate's defense sales. About 30 percent of Goodrich's business is tied to defense spending.