United Technologies Corp. (UTC) has closed on its deal to buy the security business of General Electric. UTC says it sold $2.25 billion in debt to help fund the purchase price of about $1.82 billion based on an agreement the two companies announced in November.
UTC CEO Louis Chenevert says the deal boosts the company’s ongoing effort to expand its footprint in the security and life-safety market.
“This strategic acquisition enhances the scale, market reach and product offerings of our existing UTC Fire and Security business,” Chenevert says. “It demonstrates our disciplined approach to acquisitions and capital redeployment that focuses on delivering shareholder value.”
The GE Security business, formerly part of GE Home & Business Solutions, supplies security and life-safety technologies through a broad product portfolio for commercial and residential applications.
GE, which first entered the electronic security industry in late 2001 with the acquisition of Interlogix, has said the sale advances its efforts to shed noncore assets and focus on its core strategic businesses. (To learn more about GE’s tenure in the security industry, check out SSI Editor-in-Chief Scott Goldfine’s “Under Surveillance” blog.)
UTC built its Fire & Security unit earlier this decade with purchases of Lenel Systems Int’l Inc., an access control and software developer; Chubb, a fire safety and security services business; Kidde, a British fire and safety company; and Red Hawk, which installs, integrates and services a range of security technology products and solutions.