Hartford Business Journal

www.HartfordBusiness.com • June 17, 2019 • Hartford Business Journal 5 When you have the right bank for your business, you'll never have to grow alone. • BUSINESS BANKING • COMMERCIAL LOANS • TREASURY MANAGEMENT SOLUTIONS Our products, services and team approach were designed with your growing needs in mind. Visit chelseagroton.com/growthatbusiness or call 860-448-4203 to learn how we can grow that business of yours together. PDS has been meeting the needs of the construction industry since 1965. Our dedicated team of design and construction professionals welcomes the challenge of serving its past and future customers on their most demanding projects. Davenport Landing Boat Storage Facility | Stamford, Connecticut PDS was selected to construct the new 26,000 square foot marine home of Hinckley Yachts. The 45' high facility provides a galvanized boat rack system for the storage of 52 boats. It also contains a maintenance workspace area that includes a 60' long paint spray booth and accommodations for an additional booth for prep work before painting. A specialized fi re suppression system was incorporated within the boat rack system, addressing the hazards of boat storage. The building includes an oversized 35' X 40' overhead door for the convenient movement of boats in and out of the facility. Two additional overhead doors were included to provide access to the Spray and Prep booths. The facility included build-out space for Hinckley's sales showroom and offi ces, a parts sales offi ce and locker rooms, including washer and dryers for the marine dock patrons. The new facility also housed the electrical services for the new 35 slip dockage. Project Size: 26,000 SF DESIGN BUILDERS • GENERAL CONTRACTORS • CONSTRUCTION MANAGERS SPOTLIGHT ON: I 107 Old Windsor Road, Bloomfi eld, CT 06002 (860) 242-8586 | Fax (860) 242-8587 www.pdsec.com PDS ENGINEERING & CONSTRUCTION, INC. THINK • PLAN • BUILD How the historic UTC, Raytheon combination came together By Joe Cooper jcooper@hartfordbusines.com U nited Technologies Corp.'s his- toric combination with Raythe- on Co. began to take shape about a year ago with a casual phone call. UTC CEO Gregory Hayes had just recently announced the Farmington conglomerate was looking to spin off its Otis Elevators and Carrier divi- sions when he received a call from Raytheon CEO Thomas A. Kennedy. Kennedy asked Hayes whether UTC would be interested in discuss- ing a merger of equals between the two manufacturing behemoths with the intent of creating an aerospace and defense powerhouse. Hayes was initially too busy work- ing out the details of separating UTC into three independent public com- panies, but said he was interested in the shareholder value of the potential combination. Raytheon was willing to wait. The chief executives revived merger talks in late 2018 after UTC announced its plans to spin off Otis, Carrier and its aerospace division, known as Collins Aerospace Sys- tems, which includes newly acquired Rockwell Collins and UTC Aerospace Systems. East Hartford jet-engine maker Pratt & Whitney operates under UTC's umbrella. By January, UTC and Raytheon were deep into merger negotiations in what has led to one of the indus- try's largest-ever deals. The proposed merger of equals is an all-stock deal that will create a company with an- nual revenues of about $74 billion, operating its corporate headquarters in the Boston area. That means Con- necticut will lose another corporate headquarters once and if the deal re- ceives necessary regulatory approvals. UTC is currently based in Farm- ington and at least 100 jobs there will be relocated to the Boston area. The combined company will be named Raytheon Technologies Corp. "This has been on our radar screen forever," Hayes said during a recent conference call with investors. "This is a huge benefit to UTC going forward in the fact that we aren't going to have to set up a separate corporate office for the aerospace business post spin." "I'm not going to have to worry about setting this up on my own," said Hayes. "I get the benefit of Raytheon's great staff along with ours. I think this is going to be really fortuitous timing, which nobody could have predicted but clearly that is a huge benefit to us on top of the technology that Raytheon brings. We are going to pick the best of both worlds … ." Hayes, who became UTC's CEO in Nov. 2014, said the combined compa- nies will achieve more than $1 billion in cost savings in the fourth year of their partnership. He said he has little doubt they will achieve that lofty estimate. Hayes pointed to UTC's early cost- cutting measures in conjunction with its $30 billion combination with Rock- well Collins, which has reaped more than $600 million in savings, far ex- ceeding its initial goal of $500 million. "We have a track record, we know how to do this," he said. Hayes also attempted to quell concerns about UTC's Connecticut footprint. He reiterated several times that the megadeal would only force a corporate office integration, claiming the companies are "not looking to consolidate a bunch of factories." UTC has indicated that nearly all of its 19,000 employees will remain in Connecticut, excluding about 100 moving to new headquarters in the Boston area. "We are not taking out a lot of jobs," he said. "In fact, we are going to create a lot of jobs through this merger." Hayes said the two companies plan on adding 10,000 jobs this year with continued overall employment growth in 2020 and beyond. "Raytheon will maintain a strong presence in Connecticut for years to come," Hayes said. Since taking over as UTC's CEO in 2014, Gregory Hayes has been empire building, making one big deal after another. PHOTO | HBJ FILE

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