United Technologies said Thursday that under the agreement with Goodrich, it will pay $127.50 per share in cash. This equates to a total enterprise value of $18.4 billion, including $1.9 billion in net debt assumed.
United Technologies expects to finance the transaction through a combination of debt and equity issuance. The equity component is expected to approximate 25 percent of the total, United Technologies said.
The closing is subject to customary conditions, including regulatory and Goodrich shareholder approvals.
Following completion of the transaction, United Technologies is expected to have worldwide sales of approximately $66 billion based on projected 2011 results.
The combined company's increased scale, financial strength and complementary products will strengthen United Technologies' position in the aerospace and defense industry, it said.
Goodrich has headquarters is North Carolina. Its products include aircraft landing gear, aircraft wheels and brakes. Goodrich, with estimated 2011 sales of $8 billion, serves a global customer base with 27,000 employees worldwide.
"Goodrich delivers on all of our acquisition criteria. It is strategic to our core, has great technology and people, and strengthens our position in growth markets," said United Technologies Chairman and Chief Executive Officer Louis Chenevert.
"We are very excited to bring the capabilities of two great companies together, making us more competitive and better able to provide value to both customers and shareholders."
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