Machine Design
Lockheed Martin collaborated with Sikorsky to build the MH60 naval helicopter Photo courtesy of Lockheed Martin

Lockheed Martin collaborated with Sikorsky to build the MH-60 naval helicopter.

Lockheed Martin to Purchase Sikorsky Aircraft

Lockheed Martin has entered a $9.0-billion definitive agreement to acquire United TechnologiesSikorsky Aircraft, a global provider of military and commercial helicopters. The acquisition, expected to take effect late in the fourth quarter of 2015 or early in the first quarter of 2016, will ultimately align Sikorsky under Lockheed Martin’s Mission System and Training (MST) segment.

The acquisition will be treated as an asset purchase, generating a tax benefit of $1.9 billion for Lockheed Martin and its shareholders. The company will focus on changes in the global security market in order to review alternatives for Sikorsky’s government IT and technical services, primarily in the Information Systems & Global Solutions business segment, and in a portion of the Missiles and Fire Control business segments.

The company’s MST segment already develops Sikorsky’s mission systems for the VH-92 Presidential Helicopter, Combat Rescue Helicopter, and the Naval MH-60 Helicopter.

“I’m confident this acquisition will help us extend our core business into the growing areas of helicopter production and sustainment,” says Marillyn Hewson, Lockheed Martin chairman, president, and CEO. “Together, we’ll offer a strong portfolio of helicopter solutions to our global customers and accelerate the pace of innovation and new technology development.”

United Technologies Corp. (UTC) intends to use the sale profits to buy back company stock after recent plummets in military business and oil prices this past year. UTC also plans to focus more of its energy on developing advanced technology in the aviation, aerospace, and industrial sectors. 

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