UT near deal for GE fire, security unit
United Technologies Corp. is nearing an agreement to buy General Electric Co.’s fire alarm and security systems unit for at least $1.8 billion, two people familiar with the matter said.
The deal would bolster United Technologies chief executive Louis Chenevert’s strategy of offering service contracts for equipment and systems in commercial buildings, locking in revenue streams over years. Chenevert last week said his company was a willing buyer across its industries, and singled out the fire and security division as an area of focus.
Spokesmen for Hartford-based United Technologies and GE said their companies do not comment on market speculation.
GE shares fell 7 cents to $15.78, while United Technologies was unchanged at $66.73.
United Technologies, which also makes Sikorsky helicopters and Pratt & Whitney jet engines, has risen about 25 percent this year. Fairfield, Conn.-based GE, the world’s biggest maker of jet engines and medical imaging equipment, has declined 2.6 percent.
United Technologies built its Fire & Security unit earlier this decade with purchases of the Kidde fire and Chubb security brands.
GE, which doesn’t provide earnings for its security division, last year predicted it would have about $3 billion in sales by 2011, up from more than $1.8 billion in 2007. Chief executive Jeffrey Immelt built GE’s security unit via acquisition, including the $1.4 billion purchase of fire prevention equipment maker Edwards Systems Technology from SPX Corp. in 2005.
