United Technologies explores sale of Chubb Fire & Security -sources
(Corrects year of Chubb acquisition from 2013 to 2003 in third
By Harry Brumpton and Arno Schuetze
Sept 24 (Reuters) - United Technologies Corp is
exploring a sale of its Chubb Fire & Security division for more
than $3 billion, people familiar with the matter said on Monday.
On Sept. 14, United Technologies CEO Greg Hayes said the
company will announce a decision within 60 days about whether to
break up. The company's main business lines are comprised of
aerospace engines, elevators and building equipment such as air
Chubb was acquired by United Technologies for about $1
billion in 2003, and is now part of the company's climate,
controls and security division. It has been playing catch-up for
market share with rivals Securitas AB and Tyco
International Ltd. Tyco was acquired by Johnson Controls
International Plc two years ago for $16.5 billion.
United Technologies, based in Farmington, Connecticut, has
hired Bank of America Corp to run an auction for Chubb,
the sources said, asking not to be identified because the matter
is confidential and cautioning that no deal is certain.
United Technologies did not respond to a request for
comment, while Bank of America declined to comment.
United Technologies, maker of Pratt & Whitney engines,
Carrier air conditioners and Otis elevators, has a market
capitalization of approximately $113 billion. Chubb,
headquartered in Britain, provides fire safety and security
solutions for businesses and organizations around the world,
although its business is predominantly in Europe.
Hayes said at an investor conference this month that United
Technologies planned to close its pending $23 billion
acquisition of aerospace parts maker Rockwell Collins by
the end of this month. That deal has been held up by China
delaying regulatory approval, amid an escalating trade row with
the United States.
Investors have increasingly shunned sprawling industrial
conglomerates, forcing peers such as General Electric Co
and Honeywell International Inc to also announce the
sale or spinout of major divisions.
Activist investor Bill Ackman's hedge fund Pershing Square
Capital Management LP and Daniel Loeb's hedge fund Third Point
LLC have been putting pressure on United Technologies to break
up into three focused, standalone businesses.
(Reporting by Harry Brumpton in New York and Arno Schuetze in
Frankfurt; editing by David Gregorio)
First Published: 2018-09-24 19:05:16
Updated 2018-09-24 19:54:45
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