United Technologies to buy GE Security
UTC will acquire the GE Security business from GE for $1.82 billion; UTC says the acquisition will strengthen its presence in the $100 billion global fire-safety and electronic-security industry
United Technologies has reached an agreement to purchase the GE Security business from GE for $1.82 billion. GE Security, part of GE Technology Infrastructure, supplies security and life-safety technologies that include fire-detection and life-safety systems, intrusion alarms, and video-surveillance and access-control systems.
Based in Bradenton, Florida, the business has eight manufacturing facilities and approximately 4,700 employees in 26 countries.
“This acquisition enhances UTC Fire & Security’s status as a leading franchise in the $100 billion global fire-safety and electronic-security industry,” said Louis Chênevert, UTC president and chief executive officer. “We expect this transaction will be earnings neutral to UTC in 2010 after restructuring and transaction costs, and anticipate that the cost synergies will make it accretive in 2011 and beyond,” he added.
Based in Connecticut, UTC Fire & Security is a business unit of United Technologies and provides high-technology products and services to the building and aerospace industries worldwide.
The deal is still subject to regulatory approvals.
