The local units of Cedar Rapids, Iowa-based Rockwell Collins Inc. could be in line for another shakeup in the wake of its planned $30 billion sale to United Technologies Corp.
Under the stock and debt deal announced this morning, the combined company would generate annual revenue of $67 billion to $68 billion with strong business lines in avionics, flight controls, aircraft interiors, data connectivity, security products, power generation, buildings systems and several other segments.
Farmington, Conn.-based UTC projects the deal will boost earnings after the first full year of integration and lead to cost savings of $500 million or more by the fourth year.
The transaction, projected to close this month, needs the approval of Rockwell shareholders and various regulators.
If the deal clears those hurdles, it will mark the second time Rockwell has been involved in blockbuster deal in five months.
The company in April closed an $8.6 billion buy of Florida-based B/E Aerospace Inc., the market leader in aircraft seat production.
The acquisition included a facility in Anaheim that primarily designs, develops and services chilling systems for commercial aircraft. It also handles some chip production there for the systems.
The purchase added between 250 and 300 employees to Rockwell’s local operation, which also includes a legacy outfit in Irvine, which develops cabin management systems for private and business aircraft, as well as map applications, streaming content services and electromechanical systems for both airline and private/business aviation.
The Irvine operation, which employs more than 570 people, also services and supports airline in-flight entertainment systems it has installed.
Rockwell entered the year as the 13th largest employer in OC’s aerospace and defense sector, but should crack the top ten this year with the B/E Aerospace buy.
UTC plans to combine Rockwell Collins with its UTC Aerospace Systems business to create a new business unit, Collins Aerospace Systems. Rockwell Chairman and Chief Executive Kelly Ortberg will lead the unit, with Aerospace Systems head Dave Gitlin serving as president and chief operating officer.