Article Posted on : - Jul 21, 2015

BETHESDA, MARYLAND (BNS): US defence major Lockheed Martin has announced that it has entered into a "definitive agreement" to acquire rotorcraft maker Sikorsky Aircraft for US $9.0 billion.

The price is effectively reduced to approximately US $7.1 billion, after taking into account tax benefits resulting from the transaction.

"Sikorsky is a natural fit for Lockheed Martin and complements our broad portfolio of world-class aerospace and defence products and technologies.

"I'm confident this acquisition will help us extend our core business into the growing areas of helicopter production and sustainment. Together, we'll offer a strong portfolio of helicopter solutions to our global customers and accelerate the pace of innovation and new technology development," Marillyn Hewson, Lockheed Martin chairman, president and CEO, said in an official statement on July 20.

The acquisition, subject to customary conditions, including securing regulatory approvals, is expected to close by late fourth quarter 2015 or early first quarter 2016.

Sikorsky is currently partnering Lockheed on a number of critical programmes, including the VH-92 Presidential Helicopter, Combat Rescue Helicopter and the Naval MH-60 Helicopter.