Paris: Helicopter giant up for sale
Sikorsky – one of the biggest names in the rotor wing market – is looking for a new owner.
After months of speculation, UTC has formally announced its intention to separate from Sikorsky and exit the helicopter business.
Speaking at the Paris Air Show, UTC president and chief executive Gregory Hayes, said the board has decided to remove Sikorsky from its portfolio so both organisations can focus on their core businesses.
The company’s decision comes after a “review of strategic alternatives for Sikorsky”, and a decision on whether to spin off or sell the US military and commercial helicopter manufacturer is expected in the third quarter.
Thanks mainly to its successful H-60 Black Hawk line, Sikorsky has projected annual revenues of about $10 billion by 2025, but Sikorsky president Robert Leduc has warned of “head winds” for the company on the commercial side, with helicopter sales dropping significantly in the oil and gas sector.
Commercial helicopters account for about 30% of the company’s business, and 80% of those commercial sales and the majority of aftermarket services support the “cyclic” oil and gas industry.