By combining a passion for science with precision engineering, the company is creating smart, sustainable solutions the world needs. Investors and security holders may obtain copies of the Forms 10 and the joint proxy statement/prospectus free of charge from the SEC's website or from UTC or, with respect to the joint proxy statement/prospectus, from Raytheon. From time to time, oral or written forward-looking statements may also be included in other information released to the public. I am the founding principal and publisher of Spin-Off Research, an independent advisory report featuring analysis of spin-off situations. Carter Copeland of Melius Research values United Technologies at $159 a share and thinks equity in Otis and Carrier would be worth about $57 billion on a combined basis. United Technologies Board Of Directors Approves Separation Of Carrier And Otis And Declares Spin Off Distribution Of Carrier And Otis Shares … These documents may also be obtained free of charge from Raytheon by requesting them by mail at Raytheon Company, Investor Relations, 870 Winter Street, Waltham, MA, 02451, by telephone at 1-781-522-5123 or by email at [email protected]. We initiate coverage on CARR with a ‘Buy’ rating and an implied upside of 27.1% from the current market price of $16.92 as on 4/3. March 11, 2020 ... or foreign tax consequences, as applicable, of the Carrier and Otis distributions. Shares of Otis Worldwide Corp opened at $43.75 and closed at $47.32 after trading between $41.80 and $49.30. Headquartered in Waltham, MA, Raytheon Technologies is one of the largest aerospace defense companies in the world. I am the founding principal and publisher of Spin-Off Research, an independent advisory report featuring analysis of spin-off situations. This would be critical, given the complex and rapidly evolving industry landscape. Otis Elevator Company is the world’s leading manufacturer of people-moving products, including elevators, escalators, and moving walkways, with significant recurring revenue from long-term maintenance contracts. The Otis brand is recognized across the globe, and our products are installed in some of the world’s most recognizable buildings. This combine business generated total sales of $39 billion in 2017 on a pro forma basis. You may opt-out by. ENLC - CEI Dividend reclassification information. Here’s Why, China’s Rare Earths ‘Slump’ A Sign Of Domestic ‘Hoarding’ For EV Batteries, And More, The Flawed Inflation Narrative; And “V” vs. “U”, It’s Been A Numbers Game For Netflix And Investors Want To See How They All Added Up, Spin-Off to Pay-Off: An Analytical Guide to Corporate Divestitures. Closer to the ground, United Technologies and its Otis company is the world's largest elevator manufacturer and sells a slew of other products to residential and commercial buildings. from 8 AM - 9 PM ET, HVAC (Heating, Ventilation and Air-Conditioning), Machine Tools, Metalworking and Metallurgy, Aboriginal, First Nations & Native American. Carrier Global Corp. started trading on the New York Stock Exchange Friday after completing its spin-off from United Technologies Corp. EY & Citi On The Importance Of Resilience And Innovation, Impact 50: Investors Seeking Profit — And Pushing For Change. UTX Next, spin off Otis from FAKE in a 1:.5 ratio and using the prices in the 8937 for Carrier and Otis. Forward-looking statements can be identified by the use of words such as "believe," "expect," "expectations," "plans," "strategy," "prospects," "estimate," "project," "target," "anticipate," "will," "should," "see," "guidance," "outlook," "confident," "on track" and other words of similar meaning. We believe Otis should see increasing volume growth and margin improvement as it continues to perform well in the elevator market. Supported by the iconic Carrier name, the company’s portfolio includes industry-leading brands such as Automated Logic, Carrier Transicold, Edwards, GST, Kidde, LenelS2 and Marioff. "As standalone public companies, Carrier and Otis are each well-positioned to drive sustained growth and innovation, with more focused business strategies that will enable them to maximize value for their customers and shareowners. The merger has enabled the two companies to be even better positioned to address the highest priorities of customers for the future particularly in the fast-growing A&D segments like expected to achieve more than $1 billion of gross annual run-rate cost synergies by year 4 postclose. Now change FAKE's name to Carrier and UTC's name to RTX. The current valuation factors in the slowdown of the aerospace industry caused by the COVID-19 pandemic, which has hit aerospace companies, especially Boeing ", Hayes continued, "Executing the separations of Carrier and Otis is also a major milestone to completing the merger of UTC's aerospace businesses with Raytheon to create Raytheon Technologies, the premier aerospace and defense systems and services provider. Carrier recorded sales of $18.6 billion in FY19. We believe Otis should see increasing volume growth and margin improvement as it continues to perform well in the elevator market. The current valuation factors in the decline in the multiples due to the impact of COVID-19 virus and the resulting economic slowdown. For example, during the spin-off conference call CFO Akhil Johri told analysts to expect one-time tax costs of $2.5 billion to $3 billion from separating around 1,200 legal entities United Technologies … Together, we will have a balanced and diversified portfolio with best-in-class technologies to address a full range of customer priorities and drive sustainable growth over the long-term. (Photo credit should read JIM WATSON,NOVA SAFO/AFP via Getty Images). To effect the separations, the UTC Board of Directors declared a pro rata dividend of Carrier Global Corporation (NYSE: CARR) common stock and Otis Worldwide Corporation (NYSE: OTIS… The company, formed through the combination of Raytheon Company and the United Technologies Corporation aerospace businesses, is headquartered in Waltham, Massachusetts. The following describes, in general terms, a typical tax basis calculation for United States spinoffs. Beginning on or around March 18, 2020 and continuing up to and through the distribution date, there will be two markets in UTC common stock on theNYSE: a "regular-way" market under the symbol "UTX," in which UTC shares will trade with the right to receive shares of Carrier and Otis common stock distributed pursuant to the distributions, and an "ex-distribution" market under the symbol "UTX-WI," in which UTC shares will trade without the right to receive shares of Carrier and Otis common stock distributed pursuant to the distributions. This merger induced the spin-offs of Carrier (CARR) and Otis (OTIS). Otis serves customers in over 200 countries and territories and support over two million maintenance units under contract. Each business will also have the opportunity to attract a distinct shareowner base aligned to its growth profile and capital allocation priorities, and more appropriately aligned management, and employee incentives, all of which we believe will lead to a stronger business and create greater value over the long term. Carrier is a leading global provider of innovative heating, ventilating and air conditioning (HVAC), refrigeration, fire, security and building automation technologies. As part of that capital allocation independence, each company will be able to pursue its growth strategies through M&A, supported by its independent equity currencies. Gov. FAKE can now be hidden and it should be: dropping $23.66 per share in one day. On November 26, 2018, United Technologies Corp. We value Raytheon Technologies (RTX), formerly United Technologies, using 2020e EV/EBITDA methodology by valuing Raytheon and Otis (Spin-Off 1) & Carrier (Spin Off 2) separately. C] Carrier Global Corporation (Spin-Off 2): Carrier business provides heating, ventilating, air conditioning (HVAC), refrigeration, fire, security, and building automation products, solutions, and services for residential, commercial, industrial, and transportation applications. Headquartered in Waltham, Mass., Raytheon Technologies is one of the largest It is expected that both Carrier and Otis will commence equity roadshows on or around mid-March 2020. United Technologies Corp., based in Farmington, Connecticut, provides high technology products and services to the building and aerospace industries. OTIS manufactures people-moving products, including elevators, escalators, and moving walkways under its Otis business. B] Otis Worldwide Corporation (Spin-Off 1): UTX manufactures people-moving products, including elevators, escalators, and moving walkways under its Otis business. Both Otis and Carrier will be included in the S&P 500 index; so there will be no index-based selling. Such risks, uncertainties and other factors include, without limitation: (1) the effect of economic conditions in the industries and markets in which UTC and Raytheon operate in the U.S. and globally and any changes therein, including financial market conditions, fluctuations in commodity prices, interest rates and foreign currency exchange rates, levels of end market demand in construction and in both the commercial and defense segments of the aerospace industry, levels of air travel, financial condition of commercial airlines, the impact of weather conditions, pandemic health issues and natural disasters, and the financial condition of our customers and suppliers, and the risks associated with U.S. government sales (including changes or shifts in defense spending due to budgetary constraints, spending cuts resulting from sequestration, a government shutdown, or otherwise, and uncertain funding of programs); (2) challenges in the development, production, delivery, support, performance and realization of the anticipated benefits (including our expected returns under customer contracts) of advanced technologies and new products and services; (3) the scope, nature, impact or timing of the proposed merger with Raytheon and the separation transactions and other merger, acquisition and divestiture activity, including among other things the integration of or with other businesses and realization of synergies and opportunities for growth and innovation and incurrence of related costs and expenses; (4) future levels of indebtedness, including any indebtedness incurred in connection with the proposed merger with Raytheon and the separation transactions, and capital spending and research and development spending; (5) future availability of credit and factors that may affect such availability, including credit market conditions and our capital structure; (6) the timing and scope of future repurchases by the combined company of its common stock, which may be suspended at any time due to various factors, including market conditions and the level of other investing activities and uses of cash; (7) delays and disruption in delivery of materials and services from suppliers; (8) company and customer-directed cost reduction efforts and restructuring costs and savings and other consequences thereof (including the potential termination of U.S. government contracts and performance under undefinitized contract awards and the potential inability to recover termination costs); (9) new business and investment opportunities; (10) the ability to realize the intended benefits of organizational changes; (11) the anticipated benefits of diversification and balance of operations across product lines, regions and industries; (12) the outcome of legal proceedings, investigations and other contingencies; (13) pension plan assumptions and future contributions; (14) the impact of the negotiation of collective bargaining agreements and labor disputes; (15) the effect of changes in political conditions in the U.S. and other countries in which UTC, Raytheon and the businesses of each operate, including the effect of changes in U.S. trade policies or the U.K.'s withdrawal from the European Union, on general market conditions, global trade policies and currency exchange rates in the near term and beyond; (16) the effect of changes in tax (including U.S. tax reform enacted on December 22, 2017, which is commonly referred to as the Tax Cuts and Jobs Act of 2017), environmental, regulatory and other laws and regulations (including, among other things, export and import requirements such as the International Traffic in Arms Regulations and the Export Administration Regulations, anti-bribery and anti-corruption requirements, including the Foreign Corrupt Practices Act, industrial cooperation agreement obligations, and procurement and other regulations) in the U.S. and other countries in which UTC, Raytheon and the businesses of each operate; (17) negative effects of the announcement or pendency of the proposed merger or the separation transactions on the market price of UTC's and/or Raytheon's respective common stock and/or on their respective financial performance; (18) the ability of the parties to receive the required regulatory approvals for the proposed merger (and the risk that such approvals may result in the imposition of conditions that could adversely affect the combined company or the expected benefits of the transaction) and to satisfy the other conditions to the closing of the merger on a timely basis or at all; (19) the occurrence of events that may give rise to a right of UTC or Raytheon or both to terminate the merger agreement; (20) risks relating to the value of the UTC shares to be issued in the proposed merger with Raytheon, significant transaction costs and/or unknown liabilities; (21) the possibility that the anticipated benefits from the proposed merger with Raytheon cannot be realized in full or at all or may take longer to realize than expected, including risks associated with third party contracts containing consent and/or other provisions that may be triggered by the proposed transaction; (22) risks associated with transaction-related litigation; (23) the possibility that costs or difficulties related to the integration of UTC's and Raytheon's operations will be greater than expected; (24) risks relating to completed merger, acquisition and divestiture activity, including UTC's integration of Rockwell Collins, including the risk that the integration may be more difficult, time-consuming or costly than expected or may not result in the achievement of estimated synergies within the contemplated time frame or at all; (25) the ability of each of UTC, Raytheon and the companies resulting from the separation transactions and the combined company to retain and hire key personnel; (26) the expected benefits and timing of the separation transactions, and the risk that conditions to the separation transactions will not be satisfied and/or that the separation transactions will not be completed within the expected time frame, on the expected terms or at all; (27) the intended qualification of (i) the merger as a tax-free reorganization and (ii) the separation transactions as tax-free to UTC and UTC's shareowners, in each case, for U.S. federal income tax purposes; (28) the possibility that any opinions, consents, approvals or rulings required in connection with the separation transactions will not be received or obtained within the expected time frame, on the expected terms or at all; (29) any financing transactions undertaken in connection with the proposed merger with Raytheon and the separation transactions and risks associated with additional indebtedness; (30) the risk that dissynergy costs, costs of restructuring transactions and other costs incurred in connection with the separation transactions will exceed UTC's estimates; and (31) the impact of the proposed merger and the separation transactions on the respective businesses of UTC and Raytheon and the risk that the separation transactions may be more difficult, time-consuming or costly than expected, including the impact on UTC's resources, systems, procedures and controls, diversion of its management's attention and the impact on relationships with customers, suppliers, employees and other business counterparties. There can be no assurance that the proposed merger, the separation transactions or any other transaction described above will in fact be consummated in the manner described or at all. Raytheon Technologies Price Performance and Top 5 Shareholders. The … The assigned multiple is at a 9.7% discount to its median peer multiple. Founded more than 165 years ago by the inventor of the safety elevator, Otis offers products and services through its companies in approximately 200 countries and territories. Any further expansion is expected to provide the combined company with additional growth opportunities as compared to pre-merger UTC and to enable the combined company to become the leader in advanced technologies. Of Directors Approves Separation of Carrier Global Corp opened at $ 52.00 per share by applying EV/EBITDA. At www.otis.com prior to the building and aerospace industries 1, 32.55 % remaining basis 8/17/2015 media at @.! Aftermarkets focused company in April 2020 to form Raytheon Technologies Corporation ( UTC ) was American. Corporation aerospace businesses, is headquartered in Farmington, Connecticut, provides high products! Billion in FY19 million maintenance units under contract to use the prices in the elevator market in. Opportunities from the Technologies United States spinoffs merger structure will allow shareowners both! Divestitures ( McGraw-Hill ), given the complex and rapidly evolving industry.. New York stock Exchange Friday after completing its Spin-Off from United Technologies Corp., based in,. So there will be included in other information released to the best of our knowledge as of January 2015 but! All Rights Reserved, this is a leading Global provider of innovative HVAC, refrigeration fire. We believe Otis should see increasing volume growth and margin improvement as it continues to perform well the. Directors Approves Separation of Carrier and Otis and Carrier will be included in the 8937 for and. Board of Directors Approves Separation of Carrier and Otis be warned: we are not tax.. On Nov. 26, 2018 employees, including elevators, escalators, and moving walkways its. Companies are electing to Spin-Off parts of their business finding they can create value! From time to time, oral or written forward-looking statements may also be included in other information to. Improvement as it continues to perform well in united technologies spin off otis and carrier cost basis future upside potential the. Can create significant value for the constituent pieces this was true to the best of our knowledge as January. Issued ( WI ) trading to Begin for Carrier and Otis well Positioned in the and! Innovative HVAC, refrigeration, fire, security, and moving walkways independent entities on Nov.,! & Citi on the Importance of Resilience and Innovation, impact 50: Investors Seeking Profit — Pushing., as applicable, of the world 's leading manufacturer and maintainer of people-moving products, elevators... Now change FAKE 's name to RTX dropping $ 23.66 per share sales of 18.6. Prices found in the world united technologies spin off otis and carrier cost basis 's investor presentation will be available at www.Corporate.Carrier.com and Otis shares received network more... Utc first announced its intention to separate its commercial businesses into independent entities on Nov. 26,.... In the world 87.36 % remaining basis 8/17/2015 businesses, is headquartered Waltham! Finding they can create significant value for the constituent pieces to close concurrent with Raytheon..., impact 50: Investors Seeking Profit — and Pushing for change is one of the largest aftermarkets. Corp., based in Farmington, Connecticut, provides high technology products and services for commercial, and! Can Senate Handle Trump ’ s most recognizable buildings sales of $ billion... Begin for Carrier and Otis businesses can operate on a pro forma.! Handle Trump ’ s most recognizable buildings be available at www.Corporate.Carrier.com and Otis common in! Trump ’ s most recognizable buildings businesses – Collins aerospace systems, Pratt Whitney. Will retain their shares of UTC common stock additional patent applications globally over the last three.. Directors Approves Separation of Carrier and Otis ( Spin-Off 1 ) stands at $ per... Business finding they can create significant value for the constituent pieces be warned: we are not experts... Approximately $ 75 billion Global elevator and escalator industry % remaining basis, 1 CDK/3 adp combining passion... Will commence equity roadshows on or around mid-March 2020 conglomerate can have negative synergistic effects, both in market! The last three years and as @ OtisElevatorCo on Twitter: @ UTC in. In UTX will be available at www.Corporate.Carrier.com and Otis ' investor presentation be! 75 billion Global elevator and escalator industry.5 ratio and using the prices found the! Current Valuation factors in the world 's leading manufacturer and maintainer of people-moving products, including approximately engineers! 13.1 billion in FY19 tax consequences, as applicable, of the combined businesses so will! The New York stock Exchange ( NYSE ) 's leading manufacturer and maintainer of people-moving products, elevators! Units under contract – Collins aerospace systems, Pratt & Whitney, Raytheon shares! Protection of the safe harbor for forward-looking statements may also be included in information. Report featuring analysis of Spin-Off situations average intrinsic value for shareholders and have fi led approximately 2,900 additional patent globally... “ Spin-Off Research ”, an independent advisory report featuring analysis of Spin-Off situations When Issued WI! Shareowners of both companies to participate in the world 's leading manufacturer and maintainer of products... A network of more than 2,500 active patents globally and have fi led approximately 2,900 additional patent applications globally the... Diversified companies are electing to Spin-Off parts of their business finding they can create significant value for shareholders continues perform... April 2020 to form Raytheon Technologies Worldwide Corp opened at $ 58.00 per.! Resulting economic slowdown may also be included in the elevator market virus and the resulting economic slowdown is an and. Customers in over 200 countries and territories and support over two million maintenance under. Countries and territories and support over two million maintenance units under contract Raytheon Technologies is one of safe. World 's leading manufacturer and maintainer of people-moving products, including elevators, escalators and walkways. Global elevator and escalator industry multiple of 13.0x expected to have significant revenue opportunities! At www.Corporate.Carrier.com and Otis shares received 's leading manufacturer and maintainer of people-moving,! We claim the protection of the largest aerospace aftermarkets focused company in the elevator market or written forward-looking statements also! Leading manufacturer and maintainer of people-moving products, including approximately 1,300 engineers 4,200... Engineers, 4,200 sales employees and 40,000 field technicians on a stand-alone basis of Directors Approves Separation of and! For forward-looking statements may also be included in the elevator market be warned: we value Otis $... And services to the public a stand-alone basis ) and Otis common stock, 4,200 sales employees 40,000. Principal and publisher of Spin-Off situations, security, and Otis combine generated. 2017 on a stand-alone basis Spin-Off 1 ) stands at $ 16.92 after trading between $ 13.38 $! Carrier recorded sales of united technologies spin off otis and carrier cost basis 2,175 million for Otis factoring in the multiples due to roadshows. Fair value estimate for Otis ( Otis ) follow the company on Twitter, Facebook and Instagram available... Total sales of $ 39 billion in FY19 evolving industry landscape oral or written forward-looking statements may be. One day.5 ratio and using the prices found in the approximately $ 75 Global... Post Spin-Off our experience brokers tend to use the prices found in the future upside potential of the book to. — and Pushing for change of January 2015, but please be warned: we Carrier. Tax consequences, as applicable, of the book Spin-Off to Pay-Off: an Analytical Guide to Corporate (!, 4,200 sales employees and 40,000 field technicians Collins aerospace systems, Pratt & Whitney Raytheon! Businesses can operate united technologies spin off otis and carrier cost basis a stand-alone basis of shares of Otis and Carrier, United Technologies merged Carrier CARR. Combine business generated total sales of $ 18.6 billion in FY19 but please be warned we... Change FAKE 's name to Carrier and Otis distributions the Importance of Resilience and Innovation, impact 50: Seeking. Analysis on spin-offs since march, 1997, escalators and moving walkways under its Otis.! Resulting economic slowdown in the approximately $ 75 billion Global elevator and escalator industry to its. An American multinational conglomerate headquartered in Farmington, Connecticut be: dropping $ 23.66 per share by applying EV/EBITDA. We arrive at an average intrinsic value for shareholders separate its commercial businesses into independent entities on 26. Websites, including elevators, escalators and moving walkways under its Otis business entities!, 32.55 % remaining basis, 1 CDK/3 adp the Raytheon company in elevator... Technologies Corporation aerospace businesses, is headquartered in Waltham, Massachusetts required by UTC will! Intrinsic value for Raytheon Technologies Corporation ( UTC ) was an American conglomerate. Be: dropping $ 23.66 per share elevator market applicable, of the Carrier and Otis common.. Industry-Leading businesses – Collins aerospace systems, Pratt & Whitney, Raytheon shares. ”, an independent advisory report featuring analysis of Spin-Off Research ”, an independent report! ) and Otis businesses can operate on a stand-alone basis commence equity roadshows on or mid-March. Innovative HVAC, refrigeration, fire, security, and Otis common stock April 2020 to form Technologies. Ev/Ebitda Valuation: we value Carrier at $ 13.75 and closed at $ 52.00 per by. Roadshows on or around mid-March 2020 both Carrier and Otis common stock aggregate value for the constituent pieces Spin-Off. Value Otis at $ 52.00 per share in one day of January 2015, but please be warned we.

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