UTC to acquire Rockwell Collins in $30 billion aerospace mega-merger

United Technologies Corp. (UTC) has reached a definitive agreement to buy Rockwell Collins for $30 billion, a mega-merger of aircraft parts and systems suppliers that will reshape the global aerospace manufacturing landscape.

The $30 billion transaction value includes $23 billion in equity and Farmington, Connecticut-based UTC assuming $7 billion in Cedar Rapids, Iowa-based Rockwell’s debt. The deal had been speculated about for the past month.

UTC is already the parent company of engine manufacturer Pratt & Whitney and UTC Aerospace Systems, which itself was the result of UTC acquiring Goodrich in 2012 and combining it with its subsidiary Hamilton Sundstrand. By adding Rockwell, a specialist in avionics and—following its own $8.6 billion acquisition of B/E Aerospace earlier this year—aircraft seating and interiors, UTC will be in a position to supply nearly every major component and system on an aircraft.

On a pro-forma 2017 basis, UTC projects global annual sales of approximately $67 billion to $68 billion following the transaction’s close.

The transaction is projected to close by the 2018 third quarter, subject to approval by Rockwell’s shareholders and required regulatory approvals, UTC said. Upon closing, Rockwell and UTC Aerospace Systems will be integrated to create a business unit called Collins Aerospace Systems. Rockwell CEO Kelly Ortberg will become CEO of Collins Aerospace Systems, reporting to UTC chairman and CEO Greg Hayes.

“The integrated companies’ expertise in developing electrical, mechanical and software solutions will allow us to deliver more innovative products and services and provide greater value to our customers and shareowners,” Hayes said in a statement.