Sikorsky Black Hawk helicopter Lockheed Martin has entered into a definitive agreement to acquire Sikorsky Aircraft, a world leader in ...
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| Sikorsky Black Hawk helicopter |
The price is effectively reduced to approximately $7.1 billion, after taking into account tax benefits resulting from the transaction.The acquisition is subject to customary conditions, including securing regulatory approvals, and is expected to close by late fourth quarter 2015 or early first quarter 2016.
Lockheed Martin and United Technologies Corporation have agreed to make a joint election under Section 338(h)(10) of the Internal Revenue Code, which treats the transaction as an asset purchase for tax purposes. The election generates a tax benefit with an estimated present value of $1.9 billion for Lockheed Martin and its shareholders.
UTC says, removing Sikorsky from the portfolio will better position it to focus on providing high-technology systems and services to the aerospace and building industries. UTC also owns the jet engine maker Pratt & Whitney, Carrier and Otis elevators.
Lockheed plans to align Sikorsky under the Lockheed Martin Mission Systems and Training (MST) business segment. MST and Stratford, Conn., based Sikorsky currently partner on a number of critical programs, including the VH-92 Presidential Helicopter, Combat Rescue Helicopter and the Naval MH-60 Helicopter.
The acquisition marks the largest for Lockheed, since acquiring Martin Marietta in 1995 to form Lockheed Martin. Sikorsky will add to Lockheed's already world's largest aerospace business that produces fighter jets, military transport aircraft, missiles, satellites
Sikorsky is famous for the Black Hawk tactical troop transport helicopter operated extensively by US armed forces. Black Hawk is also part of the U.S. Presidential helicopter fleet Marine One.
