United Technologies to split into three companies

United Technologies, upon completing the acquisition of Rockwell Collins, said today it intends to split into three businesses: United Technologies, Otis and Carrier.

United Technologies will be comprised of Collins Aerospace Systems and Pratt & Whitney. Collins Aerospace was formed by joining UTC Aerospace Systems and Rockwell Collins.

Otis is the elevator, escalator and moving walkway business, while Carrier is the HVAC, refrigeration, building automation, fire safety and security business.

The new United Technologies produced sales of $39 billion in 2017, according to the company. Collins Aerospace serves both commercial and military customers with electrical, mechanical and software offerings, while Pratt & Whitney is focused on aircraft propulsion, including providing the engine for the F-35 Joint Strike Fighter.

"The proposed separation is expected to be effected through spin-offs of Otis and Carrier that will be tax-free for UTC shareowners for U.S. federal income tax purposes," the company said. "Each spin-off is subject to the satisfaction of customary conditions, including final approval by UTC's Board of Directors, receipt of a tax opinion from counsel, the filing and effectiveness of a Form 10 registration statement with the U.S. Securities and Exchange Commission and satisfactory completion of financing."

Greg Hayes, United Technologies' chief executive, will manage the transition and remain UTC chairman and CEO after the split, the company said. The split is expected to be complete in 2020.