United Technologies to Buy Rockwell Collins for $23 Billion

By David Benoit, Dana Mattioli and Thomas Gryta 

Industrial conglomerate United Technologies Corp. reached a deal to buy airplane-parts maker Rockwell Collins Inc. for $23 billion, in the biggest aerospace deal in history.

Both companies' boards have approved a deal in which United Technologies will pay $140 a share in cash and stock, according to people familiar with the matter. Rockwell investors will get $93.33 a share in cash and the remaining $46.67 in United Technologies stock, the people said.

The price is an 18% premium to where Rockwell traded before word of a potential deal first surfaced early last month, and 30% above where the stock ended July.

The deal would be the biggest aerospace deal ever, followed by United Technologies' 2012 acquisition of Goodrich Corp. for about $16.5 billion, according to Dealogic.

It promises to reshape the market for aerospace parts and could be a harbinger of a breakup of United Technologies in the years following integration, according to people familiar with the company's plans.

--Robert Wall contributed to this article.

(END) Dow Jones Newswires

September 04, 2017 19:00 ET (23:00 GMT)

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