Lockheed Martin to Buy Sikorsky

Lockheed Martin announced Monday plans to acquire military and commercial helicopter maker Sikorsky Aircraft from United Technologies for $9 billion, a price that will “effectively” be reduced to $7.1 billion after tax benefits are taken in?to account. “Sikorsky is a natural fit for Lockheed Martin and complements our broad portfolio of world-class aerospace and defense products and technologies,” said Marillyn Hewson, company chairman, president, and CEO. “I’m confident this acquisition will help us extend our core business into the growing areas of helicopter production and sustainment.” The acquisition would make Lockheed the largest maker of military helicopters in the world. Lockheed also announced plans to conduct a “strategic review of alternatives” for its government IT and technical services businesses, including a “portion of the Missiles and Fire Control business segment,” which includes a range of capabilities such as JASSM and the Sniper advanced targeting pod used on the F-15, F-16, F-18, B-1, B-52, and A-10. However, the company noted that programs “mostly focused on defense and intelligence customers” will not be included in the review, but “realigned into the corporation’s other four business segments.” Lockheed plans to align Sikorsky under its Mission Systems and Training business segment once the acquisition is complete “by late fourth quarter 2015 or early first quarter 2016,” states the release. “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 Navy’s MH-60 helicopter,” states the release. (UTC release.)