The Connecticut-based parent of Carrier Corp. has announced plans to divide into three independent companies. United Technologies Corp. (NYSE: UTX) Chief Executive Officer Gregory Hayes says the decision will best position each company to drive sustained growth and lead its industry in innovation and customer focus. The separation is expected to be complete in 2020.
The three companies that will come out of the separation include:
- United Technologies: Comprised of Collins Aerospace Systems and Pratt & Whitney and will serve as a systems supplier to the aerospace and defense industry.
- Otis: Manufacturer of elevators, escalators, and moving walkways.
- Carrier: Provider of HVAC, refrigeration, building automation, fire safety and security products.
The separation will occur through the spin-offs of Otis and Carrier, which remain subject to regulatory approval and final approval from the UTC Board of Directors. UTC says Hayes will oversee the transition and will continue in his current role as CEO of UTC once the transition is complete.
The company did not provide details on the future leadership of Otis and Carrier.
"Our products make modern life possible for billions of people," Hayes said in a news release. "I’m confident that each company will continue our proud history of performance, excellence and innovation while building an even brighter future. As standalone companies, United Technologies, Otis and Carrier will be ready to solve our customers’ biggest challenges, provide rewarding career opportunities, and contribute positively to communities around the world."
UTC made headlines in Indy two years ago when it announced a deal with then-President-elect Donald Trump to keep 1,100 Carrier jobs in Indianapolis, 800 of which were slated to move to Mexico. Carrier, however, continued with plans to eliminate nearly 600 jobs from its fan coil production operations, which were not part of the Trump deal.