Goodrich Corp. to be sold
VERGENNES — A Hartford, Conn., technology company that estimates its 2011 sales will total around $58 billion struck a deal in late September to purchase Goodrich Corp., including its Vergennes plant.
United Technologies Corp. (UTC) — which makes jet engines, helicopters, elevators and other aerospace and building components — plans on closing the $16.4 billion purchase, plus $1.9 billion in assumed debt, in mid-2012, said Goodrich spokesman Andrew Martin on Thursday.
Martin declined to comment on long-term specifics of the arrangement between UTC and Goodrich, which expects its company-wide 2011 sales to reach about $8 billion, according to the press release announcing the deal.
However, Martin said to expect no change in the short term at the Vergennes plant, which is part of one of Goodrich’s 10 divisions and has seen its employee count grow from about 800 to 850 in the past year and a half.
“Everything is business as usual,” Martin said.
UTC, particularly its aerospace division, is doing well, according to an Oct. 19 AP article that Martin recommended. Its third-quarter financial report raised its profit outlook from a previous estimate of $5.35 to $5.45 a share to $5.47 per share.
That article said that share price outlook “includes a charge of about 5 cents per share related to the $16.4 billion deal to buy Goodrich Corp.”
The article also quoted UTC Chief Financial Officer Greg Hayes as saying Goodrich will “complement United Technologies’ aerospace products and provide a lucrative repair and maintenance market.”
Also quoted was Edward Jones analyst Matt Collins: “If Boeing and Airbus successfully ramp up production over the next five years, Goodrich should be a home run.”
According to UTC and Goodrich’s joint press release, Goodrich is a “global supplier of systems and services to the aerospace and defense industry. Its products include aircraft landing gear, aircraft wheels and brakes. Goodrich ... serves a global customer base with 27,000 employees worldwide.”
The release said Marshall Larsen, chairman, president and CEO of Goodrich, will become “chairman and chief executive officer of a combined UTC Aerospace Systems business unit.” The senior leadership team of the combined business will be located in Charlotte, N.C., now Goodrich’s corporate home.
The Vergennes plant is part of Goodrich’s Sensors and Integrated Systems Division, which provides new equipment and spare parts and offers repairs, modernization and retrofitting of existing aircraft and equipment to both commercial and military clients.
According to company sources in the past, a number of key products are made in Vergennes, including Health and Usage Monitoring Systems (HUMS) for widely used military helicopters. HUMS are designed to measure wear and tear on helicopters’ operating systems to predict accurately when maintenance should be performed, thus both enhancing passenger safety and preventing unnecessary expenses.
UTC’s products include Pratt and Whitney aircraft engines; Sikorsky helicopters; Carrier heating, air conditioning and refrigeration systems; Hamilton Sundstrand aerospace systems and industrial products; Otis elevators and escalators; UTC Fire and Security systems; and UTC Power fuel cells.
Andy Kirkaldy may be reached at andyk