Raytheon Technologies Corporation, which was created in April through the merger of Raytheon Company and United Technologies Corporation (UTC), is considering selling businesses that are not a good fit for the new US company, according to its top executive.
Raytheon Technologies is based in Waltham, Massachusetts. (Credit: Raytheon Technologies)
The divestitures would be in addition to the three businesses that Raytheon already sold to receive regulatory approval of the merger.
“We will probably be looking at divesting a few of the other businesses around the margin that probably do not belong as part of Raytheon Technologies,” Raytheon CEO Greg Hayes told investors on 16 September at Morgan Stanley’s 8th Annual Laguna Conference.
One business that Raytheon has already slated for potential divestiture is its Forcepoint cyber-security firm. While Raytheon mainly builds defence and aerospace systems, Forcepoint focuses on protecting commercial organisations.
To meet regulatory requirements aimed at ensuring the merger would not stifle competition, Raytheon sold its military airborne radios business and its military Global Positioning System (GPS) business to BAE Systems. It also sold its space optics business to Amergint Technologies.
Hayes said Raytheon has no plans to conduct major acquisitions, though it would consider buying small companies that give it new technology.
With “the portfolio that we have assembled here, we don’t need additional heft to be successful and deliver scale,” Hayes said.
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