United Technologies’ Steps for Closing on Goodrich
Connecticut-based United Tech had planned to issue $4 billion in new equity to pay for aerospace supplier Goodrich, but is reportedly reevaluating its plans. The Thursday announcement of selling some its businesses — Pratt & Whitney Rocketdyne, Clipper Windpower and Hamilton Sundstrand — is part of that new strategy, Bloomberg reported.
“We’re getting a very good asset in Goodrich, and we’re giving up a smaller, very good asset in these businesses,” Chief Financial Officer Greg Hayes announced on Thursday. “We feel a lot better about the deal today than we did back in September, and we felt pretty good about it back in September.”
United will also sell $8 billion to $10 billion of debt, raise $1.5 billion from a sale of mandatory convertible instruments, and spend about $3 billion in cash for purchasing the North Carolina-based Goodrich.
Hayes reportedly said the sale of rocket engine maker Rocketdyne was partly inspired by the end of NASA’s 30-year space shuttle program last July. “Without a national space policy, growth will be limited,” he said at the company’s annual analysts meeting in New York. The company is now planning to focus on its core businesses in commercial and military aerospace and commercial construction, according to Hayes.
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