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Gregory Hayes: UTC to Decide on Sikorsky Spinoff or Sale Move in ‘Coming Weeks’

Gregory Hayes
Gregory Hayes

United Technologies Corp. (NYSE: UTX) will leave the helicopter manufacturing business through a separation of its Sikorsky Aircraft business in a move UTC expects to complete by the end of its third quarter.

“Over the coming weeks, we’ll determine whether a spinoff or direct sale is the best way to enhance Sikorsky’s long-term success and create the most value for customers and shareholders, ” UTC President and CEO Gregory Hayes said Monday.

Sikorsky recorded approximately $8 billion in sales during UTC’s 2014 fiscal year and the parent company expects its revenue without the helicopter unit to reach $59 billion in fiscal 2015.

UTC announced a strategic review of the Sikorsky business in March.

A subsequent report from Aviation Week quotes Hayes as saying UTC has received three offers for the Sikorsky business and those bids have been higher than the parent company expected.

Hayes also told the publication at the Paris Air Show UTC expects to receive more offers for Sikorsky and could complete a spinoff by the end of the year if the parent company pursues that option.

Aviation Week lists Airbus, Boeing (NYSE: BA), Lockheed Martin (NYSE: LMT) and Textron (NYSE: TXT) as potential bidders for Sikorsky.

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