Lockheed Buying Sikorsky for $9B
CBJ – Lockheed Martin Corp., a worldwide leader in aerospace, defense and security is planning to acquire Sikorsky Aircraft for $9 billion. After the deal is completed, Lockheed will then review the possible sale or spinoff of $6 billion in other information technology and services businesses. Sikorsky is the helicopter unit of United Technologies Corp., whose headquarters are in Hartford Connecticut.
The Pentagon’s largest supplier said the net cost of the Sikorsky deal will be about $7 billion, taking into account tax benefits resulting from the transaction. Lockheed also reported higher earnings and revenue for the second quarter. The company has its headquarters in Bethesda, Maryland and employs about 115,000 people.
The deal, first reported by Reuters on Sunday, cements Lockheed’s dominance in weapons making and opens key foreign markets for the company, which has annual revenues of $45 billion.
The announced deal comes just months after UTC said it would explore alternatives for Sikorsky, which accounted for $7.5 billion in sales last year out of total UTC revenues of $65 billion.
This is Lockheed’s largest acquisition since it bought Martin Marietta Corp for about $10 billion two decades ago.