United Technologies Agrees to Acquire Chubb for $1B
HARTFORD, Conn. — United Technologies Corp. (UTC) has announced a $1 billion offer to purchase Chubb plc, a provider of electronic security and fire protection products and services, in an all-cash deal that the boards of directors of both companies have approved unanimously.
London-based Chubb employs approximately 48,000 people and reported 2002 revenue of $2.5 billion, with more than 1 million customers worldwide and market-leading positions in the United Kingdom, France, Hong Kong, Canada, and Australia. UTC, based in Hartford, Conn., is a diversified company that provides high-technology products and services to the building systems and aerospace industries worldwide.
The transaction will expand UTC’s commercial businesses, which include Otis elevators and escalators and Carrier heating, ventilation and air conditioning (HVAC) systems and account for 57 percent of UTC’s 2002 revenues.
“Chubb fits directly into UTC’s business mix and acquisitions strategy,” said George David, UTC’s Chairman and CEO. “The company is a market leader in commercial security services and fire protection, and these businesses have substantial markets. Chubb is further positioned well internationally, and UTC’s already high aftermarket and international revenues will increase following the acquisition. Most of all, we like the overlaps in our customer populations.”
UTC’s offer is subject to customary conditions including acceptance of the offer by Chubb shareholders owning at least 90 percent of the shares outstanding, approvals by all relevant regulatory agencies, and compliance with required filing and other regulations.
The companies expect the transaction to close in the third quarter.
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