Rockwell Acquires Avionics Division of Sundstrand Corp. for $225 Million

In a consolidation of the commercial avionics manufacturing business, Rockwell International Corp. said Monday that it has acquired a division of Sundstrand Corp. for $225 million.

Rockwell said it will merge Sundstrand’s Data Control subsidiary in Redmond, Wash., into its Collins Commercial Avionics after the sale closes. The Sundstrand unit makes avionics equipment, including “black boxes” that record data in aircraft cockpits.

Bill Mellon, spokesman for Rockwell, said he did not know whether there would be layoffs among the Sundstrand unit’s 1,500 employees as a result of the merger.

“We’ll use the time from now to the closing to assess how to best (merge) Sundstrand into the Collins unit,” he said.

Collins, which makes avionics equipment such as navigational and flight systems, employs 6,100 people in Iowa. The unit competes with large avionics businesses owned by Honeywell Inc. and Allied-Signal.

George Podrasky, an analyst at Duff & Phelps in Chicago, said Wall Street has been wondering when Rockwell would join the fray in acquiring other aerospace companies as its large competitors have done.

“This seems to be a very measured step in terms of acquisitions,” he said. “It strengthens their Collins commercial business, which is a key driver of future growth for them.”

Sundstrand Data Control reported 1991 revenue of $216 million. It has plants in Redmond and Moses Lake, Wash., and in Prescott, Ariz. Rockwell, based in Seal Beach, had 1992 revenue of $10.9 billion.

The deal, subject to regulatory and other approvals, is expected to close in the next several months, the companies said.

Adding to the Rockwell Empire

The marriage of newly acquired Data Control and Rockwell International’s Collins Commercial Avionics division will fit well with Rockwell’s strategy of broadening its commercial base and depending less on government contracts. A look at the two divisions:

DATA CONTROL

Headquarters: Redmond, Wash.

Parent: Sundstrand Corp., Rockford, Ill.

History: Sundstrand acquired United Control in 1967 and renamed it Data Control; the corporation acquired Wulfsberg Electronics in 1984 and merged it with Data Control.

Nature of business: Makes avionic and instrument systems such as flight data and cockpit recorders (commonly known as “black boxes”) and flight management systems.

Employees: 1,500.

Annual sales: $216 million for 1991, latest year for which figures are available.

COLLINS COMMERCIAL AVIONICS

Headquarters: Cedar Rapids, Iowa.

Parent: Rockwell International Corp., Seal Beach.

History: Founded in 1933 as Collins Radio. Initial product lines included amateur radio equipment and short-wave transmitters. During World War II, developed Collins Autotune, a tuning device used in communications equipment on planes, helicopters and blimps. Rockwell International acquired the company in 1973 and changed its name to Collins Avionics. It has since been divided into various government and commercial electronics divisions, including Collins Commercial Avionics.

Nature of business: Produces communications, navigation, flight control and position location products.

Employees: 6,100 worldwide.

1992 sales: $1.3 billion for fiscal year ended Sept. 30.

What the acquisition means to Rockwell

Enhances and fills out its avionics product lines.

Enables it to offer more products to large air-transport carriers as well as to private pilots.

Strengthens its commercial businesses and replaces revenue no longer available from government customers.

Sources: Sundstrand Corp., Rockwell International Corp; researched by DALLAS M. JACKSON / Los Angeles Times