United Technologies (UTX $69.50 -5.36) announced it has reached agreement to purchase Goodrich (GR $120.40 +10.91) for $127.50 per share in cash.
This equates to a total enterprise value of $18.4 billion, including $1.9 billion in net debt assumed. United Technologies expects to finance the transaction through a combination of debt and equity issuance.
Following completion of the transaction, UTX is expected to have worldwide sales of approximately $66 billion based on projected 2011 results. UTX expects the transaction will be accretive to earnings in the second year.
Additionally, UTX reaffirms guidance for FY11 (Dec), sees EPS of $5.35-5.45 vs. $5.47 Capital IQ Consensus Estimate; sees FY11 (Dec) revs of approximately $58 billion versus the $58.33 billion Capital IQ Consensus Estimate.






