Business

Rockwell Collins sets shareholder vote on acquisition

Acquisition would still require regulatory approval

Rockwell Collins headquarters in Cedar Rapids on Thursday, Dec. 1, 2016. (Liz Martin/The Gazette)
Rockwell Collins headquarters in Cedar Rapids on Thursday, Dec. 1, 2016. (Liz Martin/The Gazette)

CEDAR RAPIDS — Rockwell Collins shareholders will have the chance to weigh in on its planned acquisition soon after the new year.

Cedar Rapids-based Rockwell has set a Jan. 11 date for a shareholder vote on its acquisition by United Technologies Corp.

Shareholders will be asked to vote on three items, including whether to approve the acquisition and whether Rockwell executives should be paid certain compensation tied to the acquisition. The vote on executive compensation is only advisory and non-binding on Rockwell or United Technologies, according to a Securities and Exchange Commission filing.

Connecticut-based United Technologies announced in September it plans to acquire Rockwell in a deal valued at $30 billion, including debt. The acquisition would see Rockwell combine with United Technologies’s aerospace division to form Collins Aerospace Systems.

After the deal closes, Rockwell would be delisted from the New York Stock Exchange.

Rockwell’s board of directors already has approved the acquisition and has recommended shareholders vote in its favor. Regulators in the United States and a number of other countries still need to approve it.

The Jan. 11 shareholder vote likely will come before United Technologies and Rockwell announce where Collins Aerospace Systems would have its executive office. A decision on that office is expected by March.

Rockwell has about 8,000 employees in Cedar Rapids and about 30,000 globally. United Technologies’s aerospace division is based in Charlotte, N.C., where it has between 200 and 300 employees, according to local media reports.

The acquisition is expected to close by third quarter 2018, which runs from July through September.

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Should the deal not go through for certain reasons, including shareholders not voting to approve it, Rockwell would owe United Technologies a $695 million termination fee.

l Comments: (319) 398-8366; matthew.patane@thegazette.com

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