FARMINGTON — United Technologies and Raytheon are joining forces to create an aerospace and defense powerhouse. It is one of the biggest corporate mergers of 2019.
The two companies announced Sunday that they have agreed to combine in an all-stock deal they termed a “merger of equals.” The new company would have annual revenue of about $74 million. Together, UTC and Raytheon are worth about $166 billion in market value now. UTC makes up the lion’s share of that.
“The combination of United Technologies and Raytheon will define the future of aerospace and defense,” Greg Hayes, United Technologies chairman and CEO, said in a news release. The Wall Street Journal reported Saturday that a deal was in the works.
UTC is an industrial conglomerate and makes everything from jet engines to elevators. It owns the Pratt & Whitney engine maker as well as Collins Aerospace. Raytheon is rooted in defense and produces missile defense systems and cybersecurity solutions. The companies supply the likes of Airbus and Boeing.
The combined company will be named Raytheon Technologies Corporation, according to a statement from the companies. It will offer “expanded technology and R&D capabilities to deliver innovative and cost-effective solutions aligned with customer priorities and the national defense strategies of the U.S. and its allies and friends,” the companies said.
The combination comes months after UTC announced that it would spin off its Otis elevator division and Carrier building systems unit — a breakup meant to help the remaining company focus squarely on aerospace. The merger with Raytheon excludes those companies, which are expected to separate from UTC in the first half of next year.
UTC is headquartered in Farmington and owns major Connecticut employers including Pratt & Whitney.
Governor Lamont released a statement on the merger:
“UTC and its subsidiaries, including Pratt & Whitney, Otis Elevator, and Collins Aerospace, continue to be an important part of Connecticut’s fabric. It’s important to note that nearly all of UTC’s 19,000 employees will remain in Connecticut, with roughly 100 moving to the new headquarters.
“I’ve spoken directly with Greg Hayes and made it clear that Connecticut will always be open should things change, as they often do. This serves as a reminder that we live in an increasingly competitive economy, domestically and internationally. As such, it’s critical we invest in education, workforce development, and our transportation infrastructure to stay competitive.
“Our economic development team, led by Jim Smith, Indra Nooyi, and David Lehman, is already aggressively shifting their business development strategy, including redesigning the Connecticut Economic Resource Center to match the speed and flexibility necessary to compete and succeed in the 21st-century economy and job market. We will continue to market our state as a fantastic place to live, work, and locate a business.”