United Technologies in talks to acquire rival Goodrich in $11 bln deal: report
17 September 2011
Defence contractor United Technologies Corp (UTC), which makes equipment for the aerospace industry and the military, is in talks to acquire its rival Goodrich Corp, CNBC reported, citing sources close to the situation.
The news sent Goodrich stock up by 21 per cent to $112 in after-market trading, taking its market value to $10.6 billion.
Hartford, Connecticut-based UTC could buy Goodrich in a deal valued at $110 to $125 per share or $11 billion, and the deal could be announced as early as next week, the news channel said.
Founded in 1870 in Akron, Ohio as BF Goodrich by Dr Benjamin Franklin Goodrich, the company was one of the world's leading tyre manufacturers until it sold its tyre business in 1988 to Michelin of France, focussing instead on the aerospace industry, in which it had expanded in the 1980s.
It moved its headquarters to Charlotte and changed its name to Goodrich Corp in 2001. In 2002 it spun off its industrial businesses EnPro Industries and acquired TRW Aeronautical Systems.
Goodrich is now a global supplier of systems and services to aircraft and engine manufacturers, airlines and defense forces around the world. Its products, such as aerostructures and actuation systems, landing gear, engine control systems, sensors and safety systems, are on almost every aircraft.