United Technologies Corp. announced it has reached an agreement to purchase the GE Security business from GE for US$1.82 billion. The closing is pending regulatory approvals.
GE Security, part of GE Technology Infrastructure, supplies security and life safety technologies through a broad product portfolio for commercial and residential applications that include fire detection and life safety systems, intrusion alarms, and video surveillance and access control systems. Headquartered 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 UTC President and Chief Executive Officer Louis Chênevert. “It strengthens our North America footprint, extends our capabilities and complements our existing fire and security businesses.”
“The acquisition also brings additional world class product lines to the UTC portfolio, improves our aftermarket revenue potential and will deliver solid long-term value for UTC shareholders,” Chênevert continued. “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.”