Raytheon and aerospace company United Technologies have announced a ‘merger of equals’ into a new company to be called Raytheon Technologies Corporation.
The mega company is projected to have a combined $74 billion in pro forma 2019 sales and a combined annual R&D spend of approximately $8 billion.
United Technologies, which announced plans to separate out commercial businesses Otis and Carrier last year, comprises Collins Aerospace and Pratt & Whitney. Collins Aerospace, in turn, was formed through the combination of United Technologies Aerospace Systems (UTAS) and Rockwell Collins in one of the largest acquisitions in aerospace history.
The separation of Otis and Carrier will continue as planned.
"Today is an exciting and transformational day for our companies, and one that brings with it tremendous opportunity for our future success,” Tom Kennedy, Raytheon Chairman and CEO, said. “Raytheon Technologies will continue a legacy of innovation with an expanded aerospace and defence portfolio supported by the world's most dedicated workforce.
"With our enhanced capabilities, we will deliver value to our customers by anticipating and addressing their most complex challenges, while delivering significant value to shareowners."
"The combination of United Technologies and Raytheon will define the future of aerospace and defence,” Greg Hayes, United Technologies Chairman and CEO, said. "Our two companies have iconic brands that share a long history of innovation, customer focus and proven execution. By joining forces, we will have unsurpassed technology and expanded R&D capabilities that will allow us to invest through business cycles and address our customers' highest priorities.
“Merging our portfolios will also deliver cost and revenue synergies that will create long-term value for our customers and shareowners."
Kennedy will be appointed Executive Chairman and Hayes will be named CEO of the new company. Two years following the close of the transaction, however, Hayes will assume both roles.
In the June edition of ADM, Nick Gibbs, Vice President Customer and Account Management for Collins Aerospace Australia, said that the recent merger of Rockwell Collins and UTAS was intended to ‘redefine aerospace’.
“The intent of that acquisition and then merger was to create a new company with a mission to redefine aerospace, especially in the areas of intelligent aircraft, integrated and optimized aircraft products and services, and advanced defence systems,” Gibbs said.
“The strategy behind it has been for the company to be better able to solve some of our customers’ toughest challenges through the breadth of technology and experience that we now have, effectively under the one roof.”