United Technologies to Acquire Sundstrand

In the biggest deal in its 70-year history, United Technologies Corp., a leading maker of jet engines and aerospace components, said it has agreed to acquire aerospace components supplier Sundstrand Corp. for about $4.3 billion. Hartford, Conn.-based United Technologies said it would pay for the purchase 50% in cash and 50% in stock. It said the deal values Sundstrand at $70 a share, $11.50 above the stock’s closing price on the New York Stock Exchange on Friday. Rockford, Ill.-based Sundstrand had 1998 revenue of about $2 billion. United Technologies said it plans to combine Sundstrand with its Hamilton Standard division, maker of the NASA space suit, and rename the division Hamilton Sundstrand. United Technologies shares rose $1.06 to close at $126.50 on the New York Stock Exchange, and Sundstrand jumped $10.25 to $68.25, also on the NYSE.