Lockheed Martin has entered into a “definitive agreement” to acquire Sikorsky Aircraft for $9 billion, the company announced on Monday. “Sikorsky is a natural fit for Lockheed Martin and complements our broad portfolio of world-class aerospace and defense products and technologies,” said Marillyn Hewson, CEO of Lockheed Martin. “Together, we’ll offer a strong portfolio of helicopter solutions to our global customers and accelerate the pace of innovation and new technology development.” The sale is bad news for Boeing, according to the Seattle Times. “Lockheed will become an even more formidable challenger to Boeing in the defense sector,” according to the Times. The deal firms up Lockheed’s position as the world’s largest defense company by revenue.
Lockheed said it plans to align Sikorsky under its Mission Systems and Training business segment. MST and Sikorsky currently partner on a number of programs, including the VH-92 presidential helicopter, a combat rescue helicopter and the Navy’s MH-60. The effective price of the deal will be $7.1 billion after taking into account tax benefits, Lockheed said. The deal is expected to close by the end of this year or early in 2016. Parent company United Technologies put Sikorsky up for sale last month, saying that separation of Sikorsky from the portfolio would enable both UT and Sikorsky “to better focus on their core businesses.”
