United Technologies stock was down Tuesday on news that it plans to split its business into new companies.
According to United Technologies (NYSE:UTX), it it planning to separate into three different companies. It notes that this split will be tax free for holders of United Technologies stock and that it intends to complete the process in 2020.
The first of the new companies that will be coming out of the United Technologies split will include the company’s Collins Aerospace Systems and Pratt & Whitney businesses. Collins Aerospace Systems is a recent creation from UTX that was made with the completion of its Rockwell Collins acquisition. This company will continue to go by United Technologies. Sales from these businesses in 2017 were $39.00 billion.
The next split will have the company separating Otis and Climate into its own company. This is a portion of the company that handles the elevators business. It’s revenue for the full year of 2017 was $12.30 billion.
The final split for United Technologies will have it making Controls & Security into its own independent business. However, the company notes that it will be renaming to Carrier once it is on its own. It’s sales for the full year of 2017 were $17.80 billion.
“I’m confident that each company will continue our proud history of performance, excellence and innovation while building an even brighter future,” Gregory Hayes, CEO of United Technologies, said in a statement.
UTX stock was down 6% as of Tuesday morning.
As of this writing, William White did not hold a position in any of the aforementioned securities.
