UTC to relocate new Chubb unit
July 31, 2003
HARTFORD, Conn. - The new corporate parent of Chubb Plc. plans to relocate the London-based companyÃ¢â‚¬â„¢s headquarters here and double the size of the security and fire service provider with acquisitions, according to published reports.
Officials at United Technologies Corp. told The Associated Press this week that the necessary resources to grow the company were located here at UTC's headquarters, not in London. Chubb employs about 40 people in London but has about 48,000 employees in Europe and Asia, and will move its operational base within a year.
UTC acquired Chubb for $1 billion in a deal that bought the conglomerate a significant piece of the security industry, which UTC first struck out to do with a failed bid for Honeywell International three years ago. Now, UTC officials said they also aim to increase Chubb's operating margin from the seven percent range to the 11 to 17 percent range of UTC's other subsidiaries, including Pratt & Whitney, Sikorsky Aircraft Corporation and Otis. Chubb will become the conglomerate's seventh operating unit in terms of financial reporting as of 2004.
In a meeting Tuesday, Olivier Robert, former senior vice president, engineering and operations for Otis Elevator, was appointed president of Chubb. Jonathan Findler, former chief executive officer of Chubb, will remain on board for a transitional period.
Chubb's board of directors was also slated this week to begin the delisting process of the company from trading on the London Stock Exchange, effective Aug. 27.