Kidde buy a done deal for UTC
FARMINGTON, Conn.--UTC finalized its acquisition of Kidde in the beginning of April--a deal that expands UTC's presence on a global level.
Now that the deal is completed, Kidde will come under the new UTC Fire & Security moniker, a move that brings it back together with its former sister company, Chubb. (See related story on page 21)
UTC acquired the company for approximately $3 billion, including debt, after announcing an agreement with Kidde's board in December.
"This transaction gives us global strength in the fire safety business and access to proprietary technology, as well as contributing to a more balanced geographic portfolio," said Sandi Lee, vice president of communications at UTC Fire & Security.
Kidde increases UTC's footprint in a number of different locations. With the company folded into the UTC Fire & Security division, the combined entity has 23 percent of its revenue earned in North America, 49 percent in Europe and 19 percent in the remainder of the world.
Lee also said the combination of the two companies will create the second largest fire safety company in the world.
Kidde's industrial fire protection division, as well as its residential and commercial fire safety segments, will join the companies that make up UTC Fire & Security, while the company's aerospace business, which employs 1,300, will become part of UTC's Hamilton Sundstrand, a manufacturer and service provider of aerospace and industrial systems and a supplier of equipment for space exploration.
Now that the acquisition is final, 34 Kidde locations in North America will be managed by UTC Fire & Security. Lee said revenues are expected to be above $4 billion for 2005 with the addition of the fire safety company to UTC's repertoire.