Take-off: UTC finally inks US$23bn takeover of Rockwell Collins, the biggest deal in aerospace history

United Technologies Corp. (NYSE:UTX) has finally inked the biggest deal in aerospace history, reaching a deal to buy plane-parts maker Rockwell Collins Inc. (NYSE:COL) for US$23bn.

In a joint statement posted yesterday, the two firms said that they have reached a definitive agreement under which United Technologies will acquire Rockwell Collins for US$140.00 per share, in cash – US$93.33 per share – and UTC stock.  

READ: United Technologies closing in on a deal to buy Rockwell Collins for nearly US$30bn

The purchase price implies a total equity value of US$23bn and a total transaction value of US$30bn, including Rockwell Collins’ net debt.

The price is an 18% premium to where Rockwell Collins shares traded before talk of a potential deal surfaced early last month, and 30% above where the stock ended July.

In pre-market New York trading, Rockwell Collins shares were trading at US$139.61 each, down around 1%, with UTC shares changing hands at US$117.92 each, down 1.8%.

The deal will be the biggest aerospace deal ever, topping United Technologies’ 2012 acquisition of Goodrich Corp. for about US$16.5bn.

The deal marks the third major deal among aircraft suppliers in less than a year.

Just a few months ago, Rockwell completed its own US$8.6bn acquisition of B/E Aerospace.

And earlier this year, French aero-engine maker Safran agreed to purchase French aerospace equipment maker Zodiac for €8.7bn including debt.

Story by ProactiveInvestors