Report: UTC Eyes Rockwell Collins Acquisition

United Technologies Corp. (NYSE: UTX) is exploring an acquisition of Cedar Rapids, Iowa-based avionics contractor Rockwell Collins (NYSE: COL) as the global industrial conglomerate looks to further expand its aerospace business, Bloomberg reported Saturday.

Sources familiar with the matter told Bloomberg it is yet unclear whether the two firms are in discussions over the deal.

The report said a potential transaction would allow UTC to integrate Rockwell Collins’ aircraft interiors and avionics equipment with its portfolio of aircraft components.

UTC CEO Greg Hayes announced in May that the Farmington, Connecticut-based conglomerate was on the prowl for acquisition opportunities in the $250 million to $1 billion range.

Rockwell Collins, which Bloomberg estimates has a market capitalization of $19.3 billion, wrapped up its $8.6 billion acquisition of airline cabin equipment provider B/E Aerospace in April.

UTC has a market cap of $97 billion and generates approximately 50 percent of its sales from Pratt & Whitney and other aviation divisions, the report added.

Check Also

KBR

KBR Wins Potential $93M Navy Combat Integration System Support IDIQ

KBR’s (NYSE: KBR) government services business has won a potential five-year, $92.6M contract to engineer and produce datalink systems and associated platforms for the U.S. Navy’s combat operations.

DLA

DLA Awards Logistics Modernization Integration Support IDIQs to Advantaged Solutions, United Defense International

Advantaged Solutions and United Defense International have each received a potential five-year, $265M contract from the Defense Logistics Agency for logistics modernization integration support.