FARMINGTON - Gov. Ned Lamont said that United Technologies Corp. and its subsidiaries will continue to be a significant piece of Connecticut’s fabric after the company announced that it has entered an agreement along with Raytheon Company to join in an all-stock merger of equals.
The announcement, which was released on Sunday, stated that the combined company will be named Raytheon Technologies Corporation.
According to the announcing statement, the agreement does not include Otis and Carrier, which are part of United Technologies but will be separated in 2020.
“It’s important to note that nearly all of UTC’s 19,000 employees will remain in Connecticut, with roughly 100 moving to the new headquarters,” Lamont said in a press release. “I’ve spoken directly with Greg Hayes and made it clear that Connecticut will always be open should things change, as they often do. This serves as reminder that we live in an increasingly competitive economy, domestically and internationally. As such, it’s critical we invest in education, workforce development and our transportation infrastructure to stay competitive.”
U.S. Sen. Chris Murphy also released a statement in regards to the merger and said he is concerned about the impact it could have on Connecticut and the country.
“I intend to work closely with state government officials, the Department of Justice and the Department of Defense to ensure this merger does not violate the agreement UTC signed with the state,” Murphy said. “I remain increasingly concerned about the rapid consolidating within the defense and aerospace industry and the impact on competition. Our nation depends on a diverse and competitive industrial base and I intend to review this process closely in the months ahead.”
The newly combined company, which will be headquartered in Massachusetts, will have around $74 billion in pro-forma 2019 sales. Under the agreement, Raytheon shareowners will receive 2.3348 shares in the combined company for each Raytheon share.
When the merger is completed, United Technologies shareowners will own around 57% and Raytheon shareowners will own around 43% of the combined company, the statement said.
“Today is an exciting and transformational day for our companies, and one that brings with it tremendous opportunity for our future success,” Tom Kennedy, Raytheon chairman and CEO said on the press release. “Raytheon Technologies will continue a legacy of innovation with an expanded aerospace and defense portfolio supported by the world’s most dedicated workforce. With our enhanced capabilities, we will deliver value to our customers by anticipating and addressing their most complex challenges, while delivering significant value to shareowners.”
Kennedy will serve as the combined company’s executive chairman. Hayes, United Technology’s chairman and CEO, will be the combined company’s CEO.
“The combination of United Technologies and Raytheon will define the future of aerospace and defense,” Hayes said in the press release. “Our two companies have iconic brands that share a long history of innovation, customer focus and proven execution. By joining forces, we will have unsurpassed technology and expanded R&D capabilities that will allow us to invest through business cycles and address our customers’ highest priorities. Merging our portfolios will also deliver cost and revenue synergies that will create long-term value for our customers and shareowners.”
To learn more about Raytheon Technologies Corporation, visit www.utc.com .
Karla Santos can be reached at 860-801-5079 or firstname.lastname@example.org.