United Technologies Corp. said on late Wednesday that it is purchasing aerospace manufacturer Goodrich Corp. in a deal valued at $18.4 billion, including the assumption of $1.9 billion in debt.
The deal was in rumors for days and sent the shares of Goodrich soaring, which was evident from the fact that the stock was up more than 11 percent to $122 in aftermarket trading after word of the deal broke Wednesday.
From finance.yahoo.com:
Hartford, Conn.-based United Technologies 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, the company said.
United Technologies owns Carrier heating and cooling, Otis elevator, jet engine manufacturer Pratt & Whitney and other businesses.
It said it anticipates that the combined companies will have annual sales of about $66 billion, as United Technologies strengthens its position in the aerospace and defense industries when it takes on Goodrich. United Technology is forecasting 2011 revenue of $58 billion. Goodrich is expected to have 2011 revenue of around $8 billion.
“Goodrich delivers on all of our acquisition criteria,” Louis Chenevert, United Technologies’ chairman and CEO, said in a statement.
United Technologies said it agreed to pay $127.50 a share in cash for Goodrich.
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