1970s era aircraft to be updated with Flight 2 Avionics
Will support extension of life of the aircraft by 20 years
Provides pilots increased situational awareness and reduces workload
CEDAR RAPIDS, Iowa (Aug. 28, 2019) – Collins Aerospace Systems, a unit of United Technologies Corp. (NYSE: UTX), has been selected by L3Harris Technologies to play a key role in the U.S. Air Force’s C-130H Avionics Modernization Program Increment 2 (AMP INC 2) program. The fleet of 176 C-130H aircraft, operated by the Air National Guard and U.S. Air Force Reserve, will be equipped with Collins Aerospace’s Flight2™ integration avionics system and will expand the company’s position as a global leader in C-130 modifications.
Once on contract, Collins Aerospace’s Flight2 avionics will replace over 100 analog instruments in the current cockpit with seven multifunctional displays (MFD), three control display units (CDU), and a new digital autopilot. These new systems will reduce workload, improve the pilots’ situational awareness, and improve the safety and reliability of the aircraft. The new displays also make it easier for the pilots to overlay flight plans, see nearby points-of-interest and view radar and threat information.
“Prior to our selection for the AMP INC 2 program, 190 C-130 aircraft have already been modified, or are on contract to be modified, with our proven Flight2™ avionics. Our history of successful installations played a big role in our selection,” said Dave Schreck, vice president and general manager for Military Avionics and Helicopters at Collins Aerospace. “These aircraft are important to national security, and by working with L3Harris, our integrated avionics system will support the extension of the life of the planes for another 20 years.”
The avionics contract adds to the suite of nose-to-tail solutions that Collins Aerospace provides for the C-130 aircraft. Other products include propellers, wheels, brakes, secure communications, Head-up Displays/Enhanced Vision Systems (HUD/EVS) and advanced cargo loading systems.
PARIS, June 19 (Reuters) – Israel-based Elbit Systems on Wednesday said it would keep an eye out for possible acquisitions if the proposed merger of U.S. aerospace companies Raytheon Co and United Technologies Corp triggers certain divestments.
“We could have several opportunities coming from that kind of merger,” Ran Kril, executive vice president for International Marketing & Business Development, told Reuters at the Paris Airshow.
Kril said Elbit was committed to expanding in the United States, and would keep a close eye on any possible divestments ordered by U.S. authorities reviewing the proposed merger.
He said Elbit expected to wrap up the purchase of the night vision business of Harris Corp in the autumn. Antitrust authorities had ordered the sale of that business as a condition for approving Harris’s merger with L3 Technologies.
“We’ve decided to grow in America and after the Harris acquisition, we will always find opportunities to expand our portfolio and our presence in the U.S.,” Kril said.
(Reporting by Andrea Shalal, editing by Deepa Babington)
United Technologies, Raytheon to create $120 billion aerospace and defence giant
(Reuters) – United Technologies Corp agreed on Sunday to combine its aerospace business with U.S. contractor Raytheon Co and create a new company worth about $121 billion, in what would be the sector’s biggest ever merger.
The deal would reshape the competitive landscape by forming a conglomerate which spans commercial aviation and defense procurement. United Technologies provides primarily commercial plane makers with electronics, communications and other equipment, whereas Raytheon mainly supplies the U.S. government with military aircraft and missile equipment.
While United Technologies and Raytheon have some common customers, their business overlap is limited, an argument the companies plan to make once U.S. antitrust regulators start scrutinizing the merger.
However, the two major commercial aircraft makers, Boeing Co and Airbus SE, as well as the Pentagon, have been known to use their significant purchasing power to seek concessions from their suppliers and may not welcome a potential lessening in competition among them.
When United Technologies rebuffed an acquisition offer from Honeywell International Inc in 2016, United Technologies chief executive Greg Hayes justified the decision partly by predicting that Boeing and Airbus would never accept having a supplier that would “build the plane from tip to tail.”
United Technologies has said it is on track to separate its Carrier air conditioning and Otis elevator businesses, leaving the company focused on its aerospace business through its $23 billion acquisition of Rockwell Collins, which was completed in 2018, and the Pratt & Whitney engines business.
Chinese authorities scrutinized the acquisition of airplane parts maker Rockwell Collins closely, given the companies’ footprint in that country’s market. This resulted in the deal closing in November 2018, as opposed to the targeted third quarter.
Trade tensions between the United States and China were blamed at least partly by analysts for that delay, but a source close to the deal said the companies did not expect this to be repeated because Raytheon does not do business in China.
Under the deal announced on Sunday, Raytheon shareholders will receive 2.3348 shares in the combined company for each Raytheon share. The merger is expected to result in more than $1 billion in cost synergies by the end of the fourth year, the companies said.
United Technologies shareholders will own about 57% of the combined business, called Raytheon Technologies Corporation, which will be led by Hayes. Raytheon shareholders will own the remaining stake, and Raytheon CEO Tom Kennedy will be named executive chairman. The companies negotiated the terms over several months, according to the source, who requested anonymity discussing the confidential deliberations.
The deal has been structured so that no shareholder of either company will receive a premium. United Technologies and Raytheon have market capitalizations of $114 billion and $52 billion, respectively.
The deal is expected to close in the first half of 2020.
The newly created company is expected to return between $18 billion and $20 billion of capital to shareholders in the first three years after the deal’s completion, the companies said. The new company will also assume about $26 billion in net debt, they added.
DEFENSE SPENDING RISE
Raytheon, maker of the Tomahawk and the Patriot missile systems, and other U.S. military contractors are expected to benefit from strong global demand for fighter jets and munitions as well as higher U.S. defense spending in fiscal 2020, much of it driven by U.S. President Donald Trump’s administration.
However, Pentagon spending is projected to slow down after an initial boost under Trump. A deal with United Technologies would allow Raytheon to expand into commercial aviation.
Conversely, United Technologies could benefit from reducing its exposure to commercial aerospace clients amid concerns that the rise of international trade protectionism will suppress economic growth and weigh on the flow of goods through air traffic.
The International Air Transport Association, which represents about 290 carriers accounting for more than 80% of global air traffic, cited these concerns earlier this month, when it said the industry is expected to post a $28 billion profit in 2019, down from a December forecast of $35.5 billion.
The deal with Raytheon could put pressure on General Electric Co, which competes with United Technologies for commercial aerospace clients, to seek scale. It could also push other defense contractors, such as Lockheed Martin Corp, to explore expanding their commercial businesses.
Last year, military communication equipment providers Harris Corp and L3 Technologies Inc announced an all-stock merger that, once completed, will create the sixth-largest U.S. defence contractor.
Morgan Stanley, Evercore Inc and Goldman Sachs Group Inc were financial advisers to United Technologies, while Wachtell, Lipton, Rosen & Katz was its legal adviser. Citigroup Inc was financial adviser to Raytheon, and RBC Capital Markets LLC provided a fairness opinion. Shearman & Sterling LLP was legal adviser to Raytheon.
(Reporting by Harry Brumpton and Kate Duguid in New York; Additional reporting by Mike Stone in Washington and Rama Venkat in Bengaluru; Editing by Richard Chang and Rosalba O’Brien)
HAIFA, Israel, April 5, 2019 /PRNewswire/ — Elbit Systems Ltd. (ESLT) (ESLT) (“Elbit
Systems”) announced today that its U.S. subsidiary, Elbit Systems of
America, LLC (“Elbit Systems of America”), has signed a definitive
agreement with Harris Corporation (HRS) (“Harris”) for the acquisition of Harris’ Night Vision business (“Harris Night Vision”) for a purchase price of $350 million.
The transaction is conditioned on completion of Harris’ proposed merger with L3 Technologies, Inc. (LLL), as well as customary closing conditions, including receipt of regulatory approvals.
Headquartered in Roanoke, Virginia,
Harris Night Vision is a premier developer, producer and supplier of
night vision technology for the U.S. and allied military and security
forces and for the federal homeland security market.
Bezhalel (Butzi) Machlis, Elbit Systems President & CEO, commented:
“The market position and technological strength of Harris Night Vision
make this acquisition significant to our long-term growth strategy, with
a particular focus on the U.S. Elbit Systems of America has a proven
track record of providing high performance solutions and support
services to the U.S. defense and homeland security markets. We believe
that the completion of this acquisition will be beneficial both for
Elbit Systems and for Harris Night Vision’s employees and customers.”
About Harris Corporation
Harris
Corporation is a leading technology innovator, solving customers’
toughest mission-critical challenges by providing solutions that
connect, inform and protect. Harris supports government and commercial
customers in more than 100 countries and has approximately $6 billion
in annual revenue. The company is organized into three business
segments: Communication Systems, Electronic Systems and Space and
Intelligence Systems. Learn more at harris.com.
About Elbit Systems
Elbit Systems Ltd. is an international high technology company engaged in a wide range of defense, homeland security and commercial programs throughout the world. The Company, which includes Elbit Systems and its subsidiaries, operates in the areas of aerospace, land, and naval systems, command, control, communications, computers, intelligence surveillance and reconnaissance (“C4ISR”), unmanned aircraft systems, advanced electro-optics, electro-optic space systems, EW suites, signal intelligence systems, data links and communications systems, radios and cyber-based systems and munitions. The Company also focuses on the upgrading of existing platforms, developing new technologies for defense, homeland security and commercial applications and providing a range of support services, including training and simulation systems.
NEW
YORK, Feb 23 (Reuters) – A Boeing 767 cargo jetliner with three people
on board crashed into a bay near Houston’s George Bush Intercontinental
Airport on Saturday, police and officials said.
Atlas
Air Flight 3591 was en route to Houston from Miami when radar and radio
contact with the plane was lost about 30 miles (48 km) southeast of the
airport, the Federal Aviation Administration said in a statement.
The
National Transportation Safety Board (NTSB) will be in charge of the
investigation, the statement said, and FAA investigators were on their
way to the crash site.
The
Chambers County Sheriff’s office said the plane had been located in
Jack’s Pocket, at the north end of Trinity Bay near the small city of
Anahuac, according to a Facebook post by the sheriff’s office.
Ed
Gonzalez, the sheriff of neighboring Harris County, which includes
Houston, said on Twitter his office was sending personnel to help with
the rescue efforts.
Boeing said on Twitter it was aware of reports of an accident involving a 767 in Texas and was gathering more information.
Atlas
Air said there were three people on board the aircraft. “Those people
and their family members are our top priority at this time,” the airline
said in a statement.
The
company, a subsidiary of Atlas Air Worldwide has been operating Boeing
767 freighters on behalf of Amazon following a 2016 deal.
“Our thoughts and prayers are with the flight crew, their families and friends along with the entire team at Atlas Air during this terrible tragedy,” Dave Clark, senior vice president of worldwide operations at Amazon, said in a statement.
(Reporting by Maria Caspani in New York Editing by Paul Simao)
(Reuters) – Military communication equipment providers Harris Corp (HRS.N) and L3 Technologies Inc (LLL.N) announced on Sunday an all-stock merger that will create the United States’ sixth-largest defence contractor with a market value of $34 billion.
Increased defence spending under U.S. President Donald Trump and the Republican-led Congress is driving contractors to pursue mergers so they have more scale to bid on bigger projects, spanning everything from upgrading computer systems to space exploration.
In August, Trump signed a defence policy bill that authorized $639 billion in military spending such as buying weapons, ships, aircraft and paying troops.
“We are in an environment where the economy is pretty strong, we know defence spending is coming up, the 2019 (federal) budget is up 3 percent over 2018, 2018 was up 9 to 10 percent over the prior year,” Harris Chief Executive William Brown said in an interview.
“I think there is an increasing need for more investment, more end-to-end solutions,” Brown added.
The transaction values L3 at $15.7 billion, slightly above its market capitalisation at the end of trading on Friday of $15.3 billion. Harris has a market capitalisation of $18.2 billion.
L3 shareholders will receive 1.3 shares of Harris common stock for each of their shares. As a result, Harris shareholders will own about 54 percent of the combined company, with the remainder owned by L3 shareholders.
The combined company, L3 Harris Technologies Inc, will have about 48,000 employees and customers in over 100 countries, the companies said. The merger is expected to close in midyear 2019, they added.
The new company’s board of directors will have 12 members, consisting of six directors from each company. Brown will serve as chairman and chief executive officer, and L3 CEO Christopher Kubasik will serve as vice chairman, president and chief operating officer for the first two years following the closing of the deal, the companies said.
In the third year, Brown will transition to executive chairman and Kubasik will become CEO. After that year, Kubasik will be both chairman and CEO.
“The aerospace and defence industry is continuing to see a lot of change over the last year or so, and many people have believed for a long time this combination made sense and we have worked hard to make that happen,” Kubasik said in an interview.
A string of deals have taken place in the sector. In June, U.S. defence contractor Northrop Grumman Corp (NOC.N) acquired Orbital ATK Inc for about $7.8 billion, giving it greater access to lucrative government contracts and expanding its arsenal of missile defence systems and space rockets.
In April, weapons maker General Dynamics Corp (GD.N) bought CSRA Inc for $9.7 billion to expand its government services business, after CACI International Inc (CACI.N) withdrew its offer for CSRA following a bidding war.
Morgan Stanley (MS.N) is acting as financial adviser to Harris and Sullivan & Cromwell LLP is serving as principal legal counsel, with Paul, Weiss, Rifkind, Wharton & Garrison LLP acting as special counsel to the board of directors. Goldman Sachs Group Inc (GS.N) is acting as financial adviser to L3 and Simpson Thacher & Bartlett LLP is serving as legal counsel.
(The story adds expected closing date in paragraph 8, detail about new company’s leadership in paragraph 10)
(Reporting by Jarrett Renshaw and Harry Brumpton in New York; Additional reporting by Chris Sanders in Washington; Editing by Sandra Maler and Peter Cooney)
