Daily Management Review

Lockheed Martin Acquires Sikorsky


07/20/2015


The largest US defense corporation Lockheed Martin has signed a definitive agreement with United Technologies to acquire helicopter holding Sikorsky Aircraft for $ 9 billion, Lockheed report says.



Taking into account the tax benefits arising from the transaction, the sum would amount to 7.1 billion dollars (it is not explained what benefits exactly are).

President of Lockheed Marillyn Hewson noted that the helicopter holding will naturally fit into the structure of the corporation and will complement the range of products for the aerospace and defense industry. She added that this acquisition would help expand Lockheed Martin’s business with help of the growing helicopter market.
- Together, we will be able to offer our global customers a wide range of helicopter services and accelerate the pace of introduction of new technologies and innovative solutions, - she added.

Closing of Sikorsky Aircraft acquisition is expected in the fourth quarter of 2015 or the beginning of 2016 after the approval of the regulatory authorities.

On Sunday, July 19, Reuters reported citing its sources that Lockheed agreed to buy Sikorsky Aircraft, and is ready to pay more than $ 8 billion. The acquisition will allow the company to strengthen its superiority over Boeing.

The deal will be the largest for Lockheed Martin since 1995 - the founding of the corporation as a result of Lockheed’s absorption of Martin Marietta (the amount was 10 billion dollars). The purchase of Sikorsky Aircraft will be the largest in the last three years for the aerospace industry as a whole: the last similar deal volume of $ 16 billion was recorded in 2012, when United Technologies bought a manufacturer of aircraft Goodrich, notes Bloomberg.

Unofficial media reports about the possible sale of Sikorsky Aircraft began to appear as early as the beginning of last year, and this June, United Technologies has officially confirmed that they intend to withdraw from the helicopter business.

Sikorsky Aircraft Company was founded by legendary aircraft designer, a native Russian Igor Sikorsky, who emigrated to the United States after the Revolution - in 1919. Before, Sikorsky had worked in Russian Empire, constructing the famous heavy aircrafts "Russian Vityaz" and "Ilya Muromets", which laid the foundation for multi-engine aircraft.

In 1923, the engineer, living in the United States, started a company that developed and produced aircrafts, and later helicopters. It was Sikorsky helicopters that made the first flight across the Atlantic and Pacific oceans.

Sikorsky Aircraft is based in Stratford (CT). It produces helicopters and other aircraft, the most famous of which are multi-purpose helicopter Black Hawk. The company employs about 15 thousand people. Annual revenue is about $ 7 billion.

source: reuters.com






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