Raytheon, United Technologies merger to create $160B company
Staff photo
Raytheon's Marlborough facility
Waltham-based defense contractor Raytheon, with significant operations in Marlborough, is merging with Connecticut aerospace manufacturer United Technologies Corp. in an all-stock transaction creating a company with a market value near $160 billion.
The deal will create a company with about $74 billion in pro forma 2019 sales in one of the year’s largest corporate mergers, according to their press release on Sunday.
The deal, dubbed a merger of equals by the companies, has United Technologies shareholders owning about 57% and Raytheon shareholders owning the balance.
The merger is expected to close in the first half of 2020 following United Technologies’ separation of its Otis elevator and Carrier air conditioner businesses.
Raytheon’s main business is in weapons systems and cybersecurity while United Technologies specializes in aerospace systems.
The combined company will be named Raytheon Technologies Corp. and will be headquartered in the Greater Boston metro area, but an exact location wasn’t disclosed.
The companies’ existing corporate presences will be maintained.
Eight of the combined company’s directors will come from United Technologies and seven from Raytheon.
Current Raytheon CEO Tom Kennedy will become executive chairman and United Technologies chairman and CEO Greg Hayes will become CEO. Chairman will be added to his title two years after the deal is closed.
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