Raytheon and United Technologies Merge, HQ in Boston, Unknown Impact on RI Jobs

Raytheon and United Technologies Merge, HQ in Boston, Unknown Impact on RI Jobs

The Wall Street Journal is reporting that this weekend the management of defense contractor Raytheon agreed to merge in an all-stock deal with United Technologies (UTC).

Raytheon employs more than 1,000 in Portsmouth, RI and has 83 vacant positions in RI. Raytheon employs nearly 70,000 globally. United Technologies reportedly employs 240,000 and is presently headquartered in Farmington, CT. The combined company will be reportedly headquartered in Boston, MA.

“The combined company, valued at more than $100 billion after planned spinoffs, would be the world’s second-largest aerospace-and-defense company by sales behind Boeing Co., with annual revenue of roughly $74 billion this year," reports WSJ.com.

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"The proposed deal intensifies the consolidation in the aerospace and defense industry as plane makers seek better terms from suppliers and the Pentagon puts more pressure on contractors to cut costs and invest more of their own money in new technologies such as space systems and cybersecurity," the WSJ continued.

UTC shareholders will own 57% of the shares and UTC will appoint eight of the 15 new directors.

"UTC’s current leader, Greg Hayes, will serve as CEO of the merged company, with Raytheon CEO Thomas Kennedy as chairman for two years. Executives said the merger would allow them to boost research spending and squeeze out some $1 billion in annual costs from the marriage," according to WSJ.

The combined company will have about $26 billion in debt, with $24 billion coming from UTC.