Sikorsky Aerospace Services has acquired aircraft accessories manufacturer LifePort Inc. The target company is based out of Washington and had revenues of $65 million for 2009. Sikorsky Aerospace Services is a division of Sikorsky Aircraft Corp, a United Technologies Corp. (UTX) company.
LifePort has superior designing, construction and implementation skills in the area of accessories that are fitted to fixed and rotary wing aircraft. Its products include medical equipment, lightweight armor and furnishings, which are utilized by a wide range of commercial and business jetliners.
The terms of the acquisition have not been disclosed. After integration, LifePort will become a subsidiary of Sikorsky Aerospace Services Company. It will retain its management team and manufacturing facilities, which are also located additionally in Texas.
Sikorsky is one of the world’s largest manufacturers of military and commercial helicopters and also provides aftermarket helicopters and aircraft parts and services. The current major production programs at Sikorsky include the UH-60M Black Hawk medium-transport helicopters and HH-60M Medevac helicopters for the U.S. and foreign governments, the S-70 Black Hawk for foreign governments, the MH-60S and MH-60R helicopters for the U.S. Navy, the International Naval Hawk for multiple naval missions, and the S-76 and S-92 helicopters for commercial operations.
Sikorsky’s aftermarket business includes spare parts sales, overhaul and repair services, maintenance contracts and logistics support programs for helicopters and other aircraft. Sales are made directly by Sikorsky and its subsidiaries and joint ventures. Sikorsky is increasingly engaging in logistics support programs and partnering with government and commercial customers to manage and provide maintenance and repair services.
United Technologies has strong market positions in aerospace/defense and global infrastructure with a portfolio that includes: Carrier, Otis, Hamilton Sundstrand, Pratt & Whitney, Sikorsky and Fire & Security.
United Technologies will be one of the few companies that can take advantage of strategic M&A once liquidity is restored and functioning M&A markets re-emerge, which is more likely in fiscal 2010. However, the company is highly dependent on the U.S. government’s budgetary allocation for defense. Its business may also be affected by government contracting risks.
United Technologies provides high technology products and services to the building systems and aerospace industries worldwide. Growth is attributable to acquisitions and the internal development of existing businesses.
We currently have a Neutral recommendation on United Technologies.
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