CEDAR RAPIDS, Iowa (KCRG-TV9) -- Jet-engine maker United Technologies Corp. announced Monday night it will buy aircraft parts manufacturer Rockwell Collins for $30 billion, according to a news release posted on Rockwell's website.
Under the deal, Rockwell shareholders will receive $140 per share. Two-thirds of that will be in cash, the remainder in UTC stock.
Rockwell Collins and UTC Aerospace Systems will be combined to create a new business unit, Collins Aerospace Systems.
"This acquisition adds tremendous capabilities to our aerospace businesses and strengthens our complementary offerings of technologically advanced aerospace systems," said UTC Chairman and Chief Executive Officer Greg Hayes.
"The combination will enable us to compete more effectively for future business through continued investments in innovation, world-class integrated product offerings and the ability to retain the top talent in the industry," said Kelly Ortberg, Chairman, President and Chief Executive Officer of Rockwell Collins.
Ortberg will be the CEO of Collins Aerospace Systems once the merger is complete.
Rockwell Collins is the largest corporate employer in Cedar Rapids, according to the Cedar Rapids Metro Economic Alliance. It has about 8,000 employees in Cedar Rapids, 700 in Coralville, and another 650 combined in Bellevue, Decorah, and Manchester. Rockwell has about 30,000 employees worldwide.
The company makes aerospace and aviation technology, such as cabin displays and radar systems. Rockwell recently purchased a company that makes products for the interior of planes, including airline seats.
United Technologies is based in Farmington, Connecticut. It has about 202,000 employees worldwide. The conglomerate includes aircraft engine maker Pratt & Whitney, elevator maker Otis Elevator Company, and aerospace products supplier UTC Aerospace Systems.