Blackhawk

Lockheed Martin has agreed to acquire United Technologies’ helicopter-producing subsidiary Sikorsky Aircraft for $9bn.

The acquisition is expected to strengthen Lockheed Martin’s presence in aerospace and defence products and technologies segment.

Following the deal, Lockheed will become one of the major helicopter producers in the military and commercial rotorcraft market.

The company plans to operate Sikorsky under its Mission Systems and Training (MST) business segment.

Lockheed Martin chairman, president and CEO Marillyn Hewson said: "Sikorsky is a natural fit for Lockheed Martin and complements our broad portfolio of world-class aerospace and defence products and technologies.

"Together, we’ll offer a strong portfolio of helicopter solutions to our global customers and accelerate the pace of innovation and new technology development."

"Exiting the helicopter business will allow UTC to better focus on providing high-technology systems and services to the aerospace and building industries."

MST already works together with Sikorsky on various programmes, including the VH-92 Presidential helicopter, Combat Rescue helicopter and the Naval MH-60 helicopter.

UTC intends to use the proceeds to fund additional share repurchase to mitigate the earnings impact associated with the sale.

UTC president and CEO Gregory Hayes said: "Exiting the helicopter business will allow UTC to better focus on providing high-technology systems and services to the aerospace and building industries, and to deliver improved and sustained value to our customers and shareowners."

Subject to customary conditions, the transaction is expected to be concluded by the end of the year or early 2016.

Lockheed said it will explore alternatives for its government IT and technical services businesses within the information systems and global solutions, as well as the missiles and fire control businesses.

Image: A Sikorsky UH-60L Black Hawk helicopter. Photo: courtesy of SSGT SUZANNE M JENKINS, USAF.