Aligning with the release of their impressive second quarter earnings results, Lockheed Martin Corporation (NYSE: LMT) also announced today that they will be acquiring Black Hawk helicopter manufacturer Sikorsky, which is the helicopter business unit of United Technologies Corporation (NYSE: UTX). Lockheed Martin has agreed to pay $9 billion for the helicopter business.
If the acquisition is approved by regulators, it will turn Lockheed Martin, who is already the US’ main supplier of fighter and transport aircrafts, into the military’s most important helicopter supplier. On United Technologies’ front, if the deal were to pass, it will allow the company to refocus and restructure their businesses. United Technologies CEO, Greg Hayes, comments on the acquisition, “Exiting the helicopter business will allow UTC to better focus on providing high-technology systems and services to the aerospace and building industries and to deliver improved and sustained value to our customers and shareowners.”
In addition to this acquisition and the earnings report released today, Lockheed Martin also added that the company would be reviewing the possible sale or spinoff of their government information technology and services businesses. The sale or spinoff could amount to approximately $6 billion.