Maryland-based aerospace and security giant Lockheed Martin announced the close of its acquisition of Stratford-based Sikorsky Aircraft for $9 billion. Lockheed will unveil the new company as Sikorsky, a Lockheed Martin Company at a Nov. 6 media event at Sikorsky headquarters in Stratford.
“Today we are proud to welcome the Sikorsky team to Lockheed Martin,” Marillyn Hewson, Lockheed chairman, president and CEO, said. “Lockheed Martin and Sikorsky share a legacy of innovation and performance that has shaped the history of aviation for more than a century. Together, we are even better positioned to provide the best value for our customers, employees and shareholders.”
The closing of the acquisition awaited final approvals from the Ministry of Commerce of the People”™s Republic of China because the companies needed approval to merge from every country in which either of them did business.
Sen. Chris Murphy hailed the deal as a positive for Sikorsky and the state.
“This sale will be a win for the hardworking men and women at Sikorsky and for the servicemen and women who rely on their helicopters to defend our nation,” he said. “I look forward to working with Lockheed and the rest of the Connecticut delegation to bring more high-tech manufacturing and engineering jobs to Connecticut in the coming decades.”
Sikorsky will be aligned under the Lockheed Martin Mission Systems and Training segment and is part of Lockheed”™s focus on mission-ready solutions and expanding its core business into the growing areas of helicopter production and sustainment, Lockheed officials said.
Sikorsky, will retain its headquarters in Stratford, though the company will no longer be Connecticut based. It employs nearly 15,000 employees in 11 countries and its helicopters are used by all five branches of the U.S. armed forces along with military services and commercial operators in 40 nations.
With the addition of Sikorsky, Lockheed employs more than 126,000 people worldwide.
When Lockheed first announced the deal in July, Lockheed Chief Financial Officer Bruce Tanner said job cuts, facility consolidation and the elimination of overlapping costs are possible, according to Hearst Connecticut Media
Lockheed said the price of the acquisition was “effectively reduced to approximately $7.1 billion, after taking into account tax benefits resulting from the transaction.” The company said the IRS has classified the transaction as “an asset purchase for tax purposes,” resulting in $1.9 billion in savings.
Dan Schultz has been selected to lead the new company as president after leading the integration and previously serving as vice president for Lockheed Martin”™s Ship & Aviation Systems.
“Dan is a former Marine helicopter pilot and has decades of experience in the rotary-wing segment, including leading Lockheed Martin”™s helicopter system integration business,” Hewson said. “He brings a wealth of leadership experience and a deep understanding of our international customer base. I am confident he is the right person to lead Sikorsky at this pivotal time.”
