United Technologies Corp. announced it has reached agreement to purchase Goodrich Corporation for $127.50 per share in cash. This equates to a total enterprise value of $18.4 billion, including $1.9 billion in net debt assumed.

United Technologies expects to finance the transaction through a combination of debt and equity issuance. The equity component is expected to approximate 25 per cent of the total. Following completion of the transaction, United Technologies is expected to have worldwide sales of approximately $66 billion based on projected 2011 results. The combined company’s increased scale, financial strength and complementary products will strengthen United Technologies’ position in the aerospace and defence industry.

Goodrich is a global supplier of systems and services to the aerospace and defence industry. Its products include aircraft landing gear, aircraft wheels and brakes. Goodrich, with estimated 2011 sales of $8 billion, serves a global customer base with 27,000 employees worldwide. “Goodrich delivers on all of our acquisition criteria. It is strategic to our core, has great technology and people, and strengthens our position in growth markets,” said United Technologies Chairman and Chief Executive Officer Louis Chenevert. “We are very excited to bring the capabilities of two great companies together, making us more competitive and better able to provide value to both customers and shareholders.”

“We are extremely pleased to have an agreement with United Technologies that delivers immediate cash value to our shareholders at a premium that reflects the strength of our business,” said Marshall Larsen, Chairman, President and Chief Executive Officer of Goodrich.