Aviation

Acquisition of Rockwell Collins ‘about growth,’ more jobs

Rockwell Collins operates a service center at 2051 S. Airport Road, at Wichita Eisenhower National Airport.
Rockwell Collins operates a service center at 2051 S. Airport Road, at Wichita Eisenhower National Airport. The Wichita Eagle

Rockwell Collins, which has a service center at Wichita Eisenhower National Airport, will be acquired by United Technologies Corp. for $30 billion.

The Cedar Rapids, Iowa-based company will operate under the new name of Collins Aerospace Systems after the acquisition, expected to close in the third quarter of 2018.

The UTC acquisition isn’t expected to affect Wichita workers at Rockwell, which employs about 150 people at 2051 S. Airport Road.

“At this time, we don’t anticipate that the transaction will impact overall US jobs,” Rockwell spokeswoman Pamela Tvrdy-Cleary said in an e-mail on Monday to The Eagle. “The transaction is about growth and we expect to create jobs.”

The Wichita center works on Rockwell systems used in business jets and by regional airlines.

The announcement comes about 10 months after Rockwell announced an $8.3 billion acquisition of B/E Aerospace, whose products can be found throughout the passenger cabins of Boeing and Airbus jetliners.

UTC said in a news release it will pay $140 a share for Rockwell, a manufacturer of avionics, aircraft cabin electrical systems, and communications and cockpit systems for the military.

Rockwell’s Pro Line 21 avionics are used in all the variants of the Wichita-built Beechcraft King Air as well as Bombardier’s C Series passenger jet and its Global business jets, including the new 7000.

UTC is the parent company of jet engine maker Pratt & Whitney. Its Aerospace Systems business — which will be rolled into Collins Aerospace following the close of the transaction — manufactures cockpit controls, and aircraft cabin and brake systems, among other products.

The combination of UTC and Rockwell is expected to result in more than $500 million in cost savings, UTC said.

Jerry Siebenmark: 316-268-6576, @jsiebenmark

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