Lockheed Martin buys United Tech’s Sikorsky for $9bn
Lockheed Martin has confirmed reports that it has bought the maker of the Black Hawk helicopter Sikorsky from United Tech in a deal worth $9bn.
United Technologies said last month that it planned to sell off Sikorsky, with Lockheed the front-runner to pick it up.
The deal adds the Black Hawk helicopter, favoured by the US military, to the same stable as the F-35 fighter jet. Sikorsky also makes the Marine One helicopter used by the US President.
Lockheed boss Marillyn Hewson said the company was a "natural fit".
[It] complements our broad portfolio of world-class aerospace and defense products and technologies. I’m confident this acquisition will help us extend our core business into the growing areas of helicopter production and sustainment. Together, we’ll offer a strong portfolio of helicopter solutions to our global customers and accelerate the pace of innovation and new technology development.
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The deal will come in slightly cheaper, saving $1.9bn taking into account tax benefits, and solidifies Lockheed's position as the biggest world's biggest defence company, pulling ahead of rivals such as Boeing and Northrop Grumann.
Sikorsky will add 15,000 employees and £7.5bn in annual sales to Lockheed's 112,000 employees and revenue of more than $45bn last year.
The deal is likely to face scrutiny from the US defense department to ensure the competition remains in the market.