It’s been my privilege to work in the aerospace and defense industry for more than 30 years. During this time, I’ve been a part of mergers, acquisitions and divestitures involving Hamilton Standard, Sundstrand and several for United Technologies Corporation. So I’m no stranger to M&A—from both sides. And with each, I’ve seen new opportunities for the companies involved and for the customers who rely on them for state-of-the-art services and solutions.
But I’ve never seen the game-changing opportunities for the aerospace and defense industry that are enabled by the recent combination of UTC Aerospace Systems and Rockwell Collins to create Collins Aerospace.
Let me explain.
The goal of corporate M&A is to enable the newly-formed company to provide our customers broader product offerings, deeper intellectual resources and more robust solutions to customer challenges. Internally, our goal is to deliver accelerated revenue growth, enhanced employee career opportunity and greater shareholder value.
Yet despite the considerable advantages that M&A can bring to the marketplace, it almost always results in serious questions from concerned customers of the heritage companies:
- "Will the new company keep its eye on the ball?"
- “Will it meet my company’s deadlines?”
- "Will it continue to deliver the customer support that I’m used to?”
- “Will it remain focused on my company’s specific challenges?”
During the past year, I heard each of these questions many times. My response was always the same: an enthusiastic “yes.” But because the deal wasn’t closed, I could never provide details. Today I can. So here’s how Collins Aerospace is answering these questions. Right now.