Report: Bell Helicopter parent, Lockheed finalists for Sikorsky

Textron, which owns Bell Helicopter, and Lockheed Martin are reportedly finalists in the bidding for the Sikorsky helicopter business being sold by United Technologies Corp.

Reuters, citing unidentified people familiar with the matter, reported that a Sikorsky purchase could be valued at $8 billion. United Technologies, based in Hartford, Conn., is deciding between bids from the two defense manufacturers but could decide not to sell the unit and instead spin it off to shareholders, the news service said.

Acquiring Sikorsky would be significant in Fort Worth for either Bell or Lockheed. Bell, based in Fort Worth, has trimmed jobs over the past couple of years because of a slowdown in commercial helicopter orders and reduced production of its V-22 Osprey tilt-rotor aircraft. In April, the company announced plans to cut 1,100 jobs — more than 12 percent of its workforce — including up to 700 in Texas.

Bell has about 4,600 employees in Fort Worth, mostly at its east Fort Worth campus, which has been undergoing renovations. It also has about 800 workers in Amarillo.

Lockheed Martin Aeronautics is based in west Fort Worth, where production work is ramping up on the F-35 fighter jet program. Lockheed, which does not produce a helicopter, employs more than 13,000 people in west Fort Worth, including about 8,800 on the F-35.

United Technologies CEO Gregory Hayes said last month that a decision on a sale versus a spinoff could come in late July. The company is unloading Sikorsky to focus on manufacturing divisions spanning jet engines, elevators and air conditioners.

Textron is talking with private-equity firms to help fashion a cash offer for Sikorsky, Reuters reported. That would be a positive approach, according to Julian Mitchell, an analyst at Credit Suisse, because Textron probably wouldn’t have to divest assets and risk becoming “too helicopter-centric.”

“Such a deal could make considerable financial sense,” Mitchell said in a note to investors.

Textron shares (ticker: TXT) climbed 73 cents, or 1.7 percent, to $43.69 after gaining as much as 3.3 percent, the biggest intraday rally since June 10.

Lockheed Martin (ticker: LMT) gained $2.08 to $192.13.

This report includes material from Bloomberg News and the Star-Telegram archives.

This story was originally published July 9, 2015 at 3:50 PM with the headline "Report: Bell Helicopter parent, Lockheed finalists for Sikorsky."