Legal Technology News

Black Hawk to Be Bought By Lockheed Martin
Download PDF
1 Star2 Stars3 Stars4 Stars5 Stars (No Ratings Yet)
Loading...

Black Hawk helicopter

Summary: Lockheed is looking to break into the helicopter division with the purchase of Sikorsky Aircraft from United Technologies for almost $9 billion.

Lockheed Martin is the leader in aerospace, defense, advanced, and security technologies but with the acquisition of United Technologies Sikorsky Aircraft, they will dominate the market. The next biggest competitors to Lockheed are Boeing Inc and Northrop Grumman Corp.

  
What
Where


Lockheed is to buy the makers of the Black Hawk helicopters for over $8 billion. They report an annual revenue of around $45 billion. Lockheed currently makes the F-35 fighter jet, which brings in $391 billion a year.

Lockheed acquired Martin Marietta Corp twenty years ago for $10 billion, making this deal with Sikorsky their biggest since then. The Pentagon will evaluate the sale in order to prevent market distortions and keep competition in the market. The U.S. Defense Department can oppose the deal under an antitrust review since Sikorsky is a main supplier to the Department. They don’t expect the Department to make an antitrust objection because Lockheed does not currently make helicopters.

After the Cold War in the 1990’s, the defense market shrank considerably except for helicopter production. The helicopter section of UTC accounts for only $7.5 billion of their $65 billion revenue. They have been looking to sell off the helicopter business and exit that market since it is has lower profit margins and revenue growth than their other divisions.

Get JD Journal in Your Mail

Subscribe to our FREE daily news alerts and get the latest updates on the most happening events in the legal, business, and celebrity world. You also get your daily dose of humor and entertainment!!




Sikorsky has seen a large decline in profits, announcing they were cutting 1,400 jobs and consolidating facilities in June. With such poor prospects, the price of the deal was inflated to cover UTC’s tax bill for the appreciated value of Sikorsky since it became part of UTC in 1929.

Lockheed believes the benefits of acquiring the company will offset the high purchase price. Sikorsky has a better international presence which will help Lockheed produce more foreign sales.



Source: http://www.dailymail.co.uk/sciencetech/article-3167537/Lockheed-buy-United-Techs-Sikorsky-8-bln-sources.html

Photo: Wikipedia.org



 

Interesting Legal Sites You May Like


BCG FEATURED JOB

Locations:

Keyword:



Search Now

Mid-level Tax Associate Attorney

USA-CA-Los Angeles

Los Angeles office of an AmLaw firm seeks mid-level tax associate attorney with 3-5 years of experie...

Apply Now

Real Estate/Transactional Attorney

USA-PA-Camp Hill

Camp Hill office of our client seeks real estate/transactional attorney with experience. The candida...

Apply Now

Corporate Attorney

USA-WY-Laramie

Laramie office of our client seeks corporate attorney with 2+ years of experience.

Apply Now

RELEVANT JOBS

Legal Assistant - Estate Planning / Tax

USA-NC-Winston Salem

Spilman Thomas & Battle, PLLC, seeks an experienced Corporate Legal Assistant to join its Winston-Sa...

Apply now

Contract Attorney

USA-CA-Anaheim

ESTABLISHED SMALL LAW FIRM IS SEEKING A PRIVATE CONTRACT ATTORNEY FOR CIVIL LITIGATION, CORPORA...

Apply now

Immigration Paralegal

USA-FL-Miami Gardens

$38,000 - $42,000 a year Prepare tables of contents with supporting evidence, fill out legal f...

Apply now

Commercial Litigation and Insurance Defense Associate Attorney

USA-FL-Fort Lauderdale

Kim Vaughan Lerner, a downtown Fort Lauderdale firm practicing in the areas of commercial litigation...

Apply now

SEARCH IN ARCHIVE

To Top