Sikorsky deal could help county
Officials think purchase by Lockheed Martin could boost business.
Palm Beach County business and government officials said Monday they are optimistic the purchase of Sikorsky Aircraft Corp. by Lockheed Martin Corp. will generate more business at Sikorsky’s campus west of Jupiter, which employs over 1,200 people.
The sale by United Technologies for $9 billion was announced just as the Palm Beach County Commission is set to give second approval today to a $146,775 jobs incentive package for Sikorsky.
Kelly Smallridge, president and CEO of the Business Development Board of Palm Beach County, said there is no indication Sikorsky will not meet its job-providing expectations.
Palm Beach County Commissioner Hal Valeche applauded the purchase.
“It actually made me quite excited because Lockheed has an underwater facility here in Riviera Beach and the fact that they will have a larger presence here is great,” he said. “United Technologies’ presence is here and growing and Lockheed’s presence is here and growing. Once you have the resources here, there’s the potential for corporate headquarters.”
Analyst Cai von Rumohr at Cowen and Co. said the purchase bolsters Lockheed’s already impressive “military platform,” which includes the F-35 fighter jet. The company For a timeline of United Technologies’ presence in Palm Beach County, go to: is the biggest military contractor worldwide.
The acquisition of Sikorsky, which had more than 15,000 employees and net sales of $7.5 billion at the end of last year, would be the biggest by Lockheed since its $10 billion takeover of Martin Marietta 21 years ago.
Rebel Cook, president of the Economic Forum, a county business group, said the sale is “good for Palm Beach Coun- ty,” adding, “We need a diversity of business here, and this will strengthen the presence” of the area’s defense contractors.
Despite the hope that a biotech industry, stemming from Scripps Florida’s Jupiter campus, would become the county’s next major industry, Cook pointed out that United Technologies’ longstanding presence has led to the creation of many new businesses.
The acquisition is expected to close by the end of the fourth quarter in 2015, or in the first quarter of 2016. Lockheed Martin officials said the transaction will have no impact on the company’s previous commitment to pay shareholders cash through dividends and to buy back shares.
Divesting Sikorsky would somewhat simplify the business mix at United Technologies, which already makes such products as Otis elevators, Carrier air conditioners and Pratt & Whitney jet engines.
A combination of Lockheed and Sikorsky will be closely scrutinized by the Defense Department, which has indicated that it wants to preserve competition among military contractors.