Multinational conglomerate United Technologies Corporation (UTC) has announced that its Board of Directors has authorized a review of strategic alternatives for the corporation's Sikorsky Aircraft business, including a potential tax-free spinoff.
"As part of the portfolio review announced last December, we are exploring strategic options for Sikorsky to determine the best way to enhance its long-term success and create improved long-term value for UTC's customers and shareholders," said UTC President & Chief Executive Officer Gregory Hayes.
"Today, Sikorsky is a world leader in the design, manufacture and service of military and commercial helicopter platforms. It has unmatched technological capabilities, outstanding people and a strong backlog," added Hayes. "Looking to the future, we are evaluating whether Sikorsky's unique business as a rotorcraft OEM with a predominately military customer base is best positioned as a stand-alone company, and whether a separation would allow United Technologies to better focus on providing high-technology systems and services to the aerospace and building industries."
UTC expects to conclude its strategic review before the end of the year. However, no specific timetable has been set, and there can be no assurance that a spinoff or any other transaction will take place. Likewise, no decision has been made on the timing or terms of any such transaction if one were to occur.
The company will discuss its decision to review strategic alternatives for Sikorsky at its annual investor and analyst meeting beginning at 1:00 p.m. Thursday, March 12. The meeting will be webcast live on the Internet at www.UTC.com and will be archived on the website afterward.
UTC, based in Hartford, Conn., provides high technology products and services to the building and aerospace industries. Its major business units include Sikorsky Aircraft, Pratt & Whitney, UTC Aerospace Systems and UTC Building & Industrial Systems.
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