Lockheed Martin Corp., Pentagon's largest arms supplier, will acquire United Technologies Corps.' Sikorsky Aircraft for more than $8 billion, The Boston Globe learned.
Obtaining the largest military maker of helicopters, which will add to the already existing lineup of missiles and warplanes, is the biggest acquisition since 2012, when Goodrich Corp was purchased by United Technologies for $16 billion.
The two companies are expected to make an announcement on Monday, according to Republican American. Spokespersons for both companies were contacted for a statement, but they did not respond.
However, the statement released on Sunday by U.S. Senator Christopher S. Murphy showed signs of an ongoing deal.
"As the sale of Sikorsky becomes final, I will work closely with Sikorsky leadership to protect those jobs and ensure that Sikorsky helicopters continue to be made right here in Connecticut by our skilled and talented workforce," Senator Murphy stated.
He added that he was determined and committed in taking care and defending the jobs the company supports across the state. About 16,500 people are employed by Sikrosky Aircraft globally, 8,200 of which work in Connecticut.
The Hartford-based company plans to focus on making jet engines, air conditioners and elevators; hence, selling Sikorsky Aircraft. Lockheed has been identified as one of the finalists to buy the company, together with Textron Inc.
This move will reportedly extend Lockheed Martin's status in the market as the largest global defense contractor and widen its lead over Boeing Corp.
This seems to be a pretty good quarter for Lockheed Martin. Other than the planned acquisition, the company also reported an increase of 4.5 percent quarterly profit.
The company's earnings per share for 2015 was forecasted at $10.85 to $11.15. As per CNBC's report, it rose from $11 to $11.30.
The company's net income increased to $929 million ($2.94 per share) from $889 million ($2.76 per share) in the second quarter that ended on June 28.
