Lockheed Martin to Buy Sikorsky Aircraft for Over $8 Billion
Sources reported that Lockheed Martin Corp has agreed to buy United Technologies Corp’s Sikorsky Aircraft for over $8 billion. The deal would confirm Lockheed’s dominance in weapon making and giving the Black Hawk helicopter to the maker of the F-35 fighter jet.
It is said that the deal will prove to be profitable for Lockheed the defense business of Boeing Co and Northrop Grumman Corp. Lockheed already has an annual revenues of around $45 billion and dwarves its nearest competitors.
Sources familiar with the matter told that the deal will make Lockheed less reliant on the $391 billion F-35 fighter jet business. It will even expand its overseas sales by adding Sikorsky’s iconic Black Hawk helicopters to a product line that already spans everything from satellites to naval ships.
Both the companies are planning to announce the deal on Monday before both report second-quarter results on Tuesday, said the sources, who were not authorized to speak publicly.
So far it will be Lockheed’s largest acquisition since it bought Martin Marietta Corp for about $10 billion two decades ago.
The finalization of the deal will be the first major move for both United Tech Chief Executive Officer Greg Hayes and Lockheed CEO MarillynHewson, who took her job in January 2013.
Both the companies did not make any official comment about the matter.
According to several sources familiar with the matter, Textron Inc, parent company of Bell Helicopter, also submitted a bid for Sikorsky, but was dropped out of the bidding after the price rose.
The US Defense Department can object to a merger involving its key suppliers during a federal antitrust review, which in this case could be led by the US Justice Department.
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