Goodrich sold to United Tech

 
City A.M. Reporter
UNITED Technologies has reached a $16.5bn (£10.7bn) cash deal to acquire aircraft components maker Goodrich, in what would be the diversified US manufacturer’s biggest deal in a decade.

United Tech, led by George David (pictured), said it would pay $127.50 a share for Goodrich, a 47 per cent premium over the stock’s price before news of a possible bid. It also includes $1.9bn in assumed debt.

The deal comes as blue-chip United Tech looks to cash in on the upswing in plane orders and production as declining global spending on defence pressures its military arm.

The acquisition can help it build critical mass in new aircraft technology and plane services as civil demand rebounds.

Goodrich is poised to grow as key commercial plane programmes such as the Boeing 787 Dreamliner and upcoming Airbus A320neo ramp up production.

The deal comes despite a broad slowdown in merger activity globally, as market volatility and economic uncertainty give many firms a pause.

Goodrich supplies parts for United Tech’s Pratt & Whitney jet engines and Hamilton Sundstrand’s aircraft electronics.