Aerospace giant Lockheed Martin is buying Sikorsky Aircraft for about $7.1 billion and integrating the famed helicopter maker into its Mission Systems and Training business unit, it announced Monday.Sikorsky, maker of the military’s Black Hawk helicopter, is a unit of United Technologies Corporation based in Connecticut. Lockheed Martin will pay $9 billion to United Technologies for the rotary-wing aircraft unit, but reap $1.9 billion in tax benefits from the deal, offsetting a portion of the purchase price, it said.
“Sikorsky is a natural fit for Lockheed Martin, and complements our broad portfolio of world-class aerospace and defense products and technologies,” Marillyn Hewson, Lockheed’s chairman, chief executive officer and president, said in a prepared statement. “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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Lockheed Martin will make Sikorsky a part of its Mission Systems and Training segment, which provides engineering, software and technology solutions for military and civilian customers. That business unit has facilities in Moorestown, among other sites. It brought in $7.1 billion in sales in 2014 and employs more than 17,000 people around the world.
Bethesda, Maryland-based Lockheed pointed out that it has partnered with Sikorsky on a number of helicopter projects in the past.
The deal — which is subject to customary closing conditions and regulatory approvals — is expected to close in the fourth quarter of 2015 or the first quarter of 2016.
In the news release announcing the deal, Lockheed also said it will conduct a strategic review of its government information technology and technical services businesses. Those programs are expected to bring in $6 billion in sales in 2015, and employ more than 17,000 people.
Lockheed employs more than 112,000 people around the world, and had net sales of $45.6 billion in 2014.
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