Top Defense Contractor Lockheed Martin Helicopters’ Deal

Lockheed Martin Corp., the world’s biggest defense contractor, is about to get even bigger after buying helicopter maker Sikorsky from United Technologies Corp. in a deal worth 7.1 billion after “taking into account tax benefits resulting from the transaction.”

It will be Lockheed’s biggest acquisition since 1995, when it merged with Martin Marietta in a deal valued at $10 billion.

For United Technologies, it’s the end of a 70-year relationship with the helicopter pioneer, maker of the iconic Black Hawk choppers used by the U.S. military (read more about the strategy of new CEO Greg Hayes here). It’s also a reaction to falling margins driven by cuts in the defense budget and, more seriously over the last year, a sharp drop in civil orders from the oil and gas industry. Oil companies have slashed investment spending in response to the 50% drop in oil prices since last summer. Read More >> 

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