The largest employer in Iowa’s second-largest city is being bought in what’s considered the biggest deal in aerospace industry history. Avionics maker Rockwell Collins, headquartered in Cedar Rapids, is being purchased by Connecticut-based rival United Technologies for 23-billion dollars. Iowa Senator Chuck Grassley says it’s still unclear whether there may be any anti-trust issues that derail the deal.
The sale was announced Monday night. Rockwell reportedly has about seven-billion dollars in debt, pushing the deal to be valued at 30-billion dollars.
Rockwell Collins employs about 30-thousand people globally, including eight-thousand in Cedar Rapids. It’s unclear how many of them may face losing their jobs with the acquisition.
Rockwell makes a variety of technology used in aviation, ranging from radar systems to the seats in airliners, while part of United Technologies makes aircraft components, including engines.
The companies expect the deal to close by the third quarter of 2018, subject to approval from Rockwell Collins shareowners and regulators.
(story courtesy of Radio Iowa)