United Technologies is to buy a fire and security business from General Electric, in a nearly 2 billion dollar deal. WNPR’s Harriet Jones reports.
Hartford based UTC has agreed to acquire GE’s fire-alarm and surveillance systems unit, which has its headquarters in Florida. GE has been looking to slim down its portfolio of businesses, also recently shrinking its finance arm, and entering talks to sell its NBC Universal entertainment business.
UTC meanwhile, will bolster its presence in the fire and security business with the deal – it began its division in 2003, with the acquisition of Chubb and then Kidde, and the business has been a steady money maker for the conglomerate ever since. UTC’s head of commercial businesses, Ari Bousbib described the acquisition as a perfect strategic fit:
"We want to acquire product and technologies to complement the full suite of fire and security products that our customers require. It actually inhibits growth if you do not have the full array. It increases the chances to have a bigger share of orders from your customers when you’ve got that full array of technologies."
UTC says the acquisition should have no effect on 2010 earnings, but will contribute to growth in 2011.