United States. United Technologies announced that it has completed its $23 billion acquisition of Rockwell Collins, a manufacturer of aviation electronics. Now the company's intention is to separate its commercial businesses, Otis and Carrier, into separate entities.
The company's announcement was the latest from an expanding industrial conglomerate that decided it would be more efficient and focused as smaller, separate entities.
"Our decision to separate United Technologies is a pivotal moment in our history and we will better position each independent company to drive sustained growth, lead its industry in innovation and customer service, and maximize value creation," said the CEO of United Technologies, Gregory Hayes.
The three companies will be: the air conditioning and construction systems business, Carrier; United Technologies, which will house its aerospace and defense supplier businesses, and Otis, the maker of elevators, escalators and moving walkways. The separation is expected to be completed in 2020, the company said.
Last Friday, United Technologies received final regulatory approval for its rockwell Collins deal. The new combined aerospace business would have had sales of about $39 billion last year, United Technologies said.
Hayes will remain as CEO of the aerospace business. The company did not name leaders for the separate businesses of Otis and Carrier. The company currently employs about 205,000 people. He did not explain whether jobs would be lost in the separation.
