Upon separation, each company will have the strategic focus and financial flexibility to deliver innovative customer solutions and drive long-term value
· Completion of Rockwell Collins acquisition creates an industry-leading aerospace systems supplier, Collins Aerospace Systems
· Anticipates acquisition to be $0.15 to $0.20 accretive to adjusted earnings per share in 2019
· Announces intention to separate United Technologies (“UTC”) into three independent companies
· Following portfolio separation, UTC to operate as a leading aerospace company comprised of Collins Aerospace Systems and Pratt & Whitney businesses
· Otis and Climate, Controls & Security (“CCS”) businesses to become independent companies; CCS will be renamed Carrier.
· Tax-free separation to UTC shareowners for U.S. federal income tax purposes expected to be completed in 2020.
Investor conference call at 8:00 a.m. ET, Tuesday, November 27, listen live at
FARMINGTON, Conn., November 26, 2018 – United Technologies Corp. (NYSE: UTX) today announced the completion of its acquisition of Rockwell Collins (NYSE: COL) and the company’s intention to separate its commercial businesses, Otis and Carrier (formerly CCS), into independent entities. The separation will result in three global, industry-leading companies:
· United Technologies, comprised of Collins Aerospace Systems and Pratt & Whitney, will be the preeminent systems supplier to the aerospace and defense industry; Collins Aerospace was formed through the combination of UTC Aerospace Systems and Rockwell Collins;
· Otis, the world’s leading manufacturer of elevators, escalators and moving walkways; and
· Carrier, a global provider of HVAC, refrigeration, building automation, fire safety and security products with leadership positions across its portfolio.
“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 maximize value creation,” said United Technologies Chairman and Chief Executive Officer Gregory Hayes. “Our products make modern life possible for billions of people. I’m confident that each company will continue our proud history of performance, excellence and innovation while building an even brighter future. As standalone companies, United Technologies, Otis and Carrier will be ready to solve our customers’ biggest challenges, provide rewarding career opportunities, and contribute positively to communities around the world.”
OVERVIEW OF THREE LEADING COMPANIES
United Technologies (UTC)
Otis Elevator Company (Otis)
SEPARATION TRANSACTION DETAILS
Creating Collins Aerospace