Carrier has an extensive global footprint with approximately 53,000 employees globally, including over approximately 3,600 engineers, and its solutions are sold in over 160 countries around the world. EV/EBITDA Valuation: We value Raytheon Technologies at $58.00 per share based on 2020e EV/ EBITDA multiple of 8.0x for Pratt & Whitney (~3% premium to its peer median multiple), 8.0x for Collins Aerospace (at ~10% premium to its peer median multiple), and 7.5x for Raytheon. In addition, in connection with the separation transactions, on February 7, 2020, Carrier Global Corporation and Otis Worldwide Corporation publicly filed their respective registration statements on Forms 10, which had originally been confidentially submitted on August 9, 2019 and subsequently amended (the "Forms 10"). Raytheon shareholders will receive 2.3348 shares of RTX. Supported by the iconic Carrier name, the company’s portfolio includes industry-leading brands such as Automated Logic, Carrier Transicold, Edwards, GST, Kidde, LenelS2 and Marioff. Investors and security holders may obtain copies of the Forms 10 and the joint proxy statement/prospectus free of charge from the SEC's website or from UTC or, with respect to the joint proxy statement/prospectus, from Raytheon. Together, we will have a balanced and diversified portfolio with best-in-class technologies to address a full range of customer priorities and drive sustainable growth over the long-term. ADP Spinoff of CDK, 10/1/2014, 87.36% Remaining Basis, 1 CDK/3 ADP. Opinions expressed by Forbes Contributors are their own. - "When-issued" trading expected to begin on March 18, 2020, - Record date for distribution of Carrier and Otis shares will be March 19, 2020, - Distribution date for Carrier and Otis shares anticipated to be April 3, 2020. Cision Distribution 888-776-0942 Upon separation, each company has the strategic focus, nimbler organizational & operating model, and financial flexibility to deliver innovative customer solutions and drive long-term value. Each UTC shareowner will receive one (1) share of Carrier common stock and one-half (0.5) share of Otis common stock for every one (1) share of UTC common stock held on the record date. AAPL 7 for 1 Split. The company has a network of more than 69,000 employees, including approximately 1,300 engineers, 4,200 sales employees and 40,000 field technicians. I am the founding principal and publisher of Spin-Off Research, an independent advisory report featuring analysis of spin-off situations. Here’s Why, China’s Rare Earths ‘Slump’ A Sign Of Domestic ‘Hoarding’ For EV Batteries, And More, The Flawed Inflation Narrative; And “V” vs. “U”, It’s Been A Numbers Game For Netflix And Investors Want To See How They All Added Up, Spin-Off to Pay-Off: An Analytical Guide to Corporate Divestitures. Next, spin off Otis from FAKE in a 1:.5 ratio and using the prices in the 8937 for Carrier and Otis. It is expected that both Carrier and Otis will commence equity roadshows on or around mid-March 2020. We initiate coverage on OTIS with a ‘Hold’ rating and an implied upside of 9.9% from the current market price of $47.32 as on 4/3. UTC expects to make available information statements to all shareowners entitled to receive the distributions of shares of Carrier and Otis common stock. Gov. This press release contains statements which, to the extent they are not statements of historical or present fact, constitute "forward-looking statements" under the securities laws. The … Carrier is a leading global provider of innovative heating, ventilating and air conditioning (HVAC), refrigeration, fire, security and building automation technologies. Can Senate Handle Trump’s Impeachment And A New Stimulus Package At Once? Otis currently holds more than 2,500 active patents globally and have fi led approximately 2,900 additional patent applications globally over the last three years. UTC expects that "when-issued" trading for Carrier's and Otis' respective common stocks will begin on or around March 18, 2020 on the NYSE under the symbol "CARR-WI" for Carrier and "OTIS-WI" for Otis, and will continue up to and through the distribution date. Following the completion of the separations on April 3, 2020, Carrier and Otis common stocks will begin "regular way" trading on the NYSE. Raytheon Technologies shares began trading after Raytheon and United Technologies merged. Raytheon Technologies Corporation is an aerospace and defense Company that provides advanced systems and services for commercial, military and government customers worldwide. The current valuation factors in the decline in the multiples due to the impact of COVID-19 virus and the resulting economic slowdown. Closer to the ground, United Technologies and its Otis company is the world's largest elevator manufacturer and sells a slew of other products to residential and commercial buildings. We expect 2020 EBITDA of $2,175 million for Otis factoring in the strong operational performance in FY19. Raytheon Company and United Technologies Corporation on April 3, 2020, following the completion by United Technologies of its previously announced spin-offs of its Carrier and Otis businesses. For more information, visit www.Corporate.Carrier.com or follow Carrier on social media at @Carrier. Following the spin-offs of Otis and Carrier by United Technologies (UTX), the remaining company merged with Raytheon Co, and the combined company is named as Raytheon Technologies. United Technologies Corporation (UTC) was an American multinational conglomerate headquartered in Farmington, Connecticut. Post spin-off, Raytheon will focus on defence and aerospace business while Otis will consist of Elevator business, which will focus on its electrical enclosures, electric heat tracing solutions, heat management systems, and electrical and fastening solutions, and similarly, Carrier will focus on its HVAC, refrigeration, fire and security solutions. March 11, 2020 ... or foreign tax consequences, as applicable, of the Carrier and Otis distributions. Raytheon Technologies Corporation announced on Friday, April 3, that the all-stock merger between the company and United Technologies Corporation (UTC) has been completed.This merger follows the completion of the spin-offs of UTC’s Carrier and Otis businesses. Headquartered in Waltham, MA, Raytheon Technologies is one of the largest aerospace defense companies in the world. Our goal continues to be to have the merger ready to close concurrent with the portfolio separation. Carrier’s businesses enable modern life, delivering effi ciency, safety, security, comfort, productivity and sustainability across a wide range of residential, commercial and industrial applications. UTC shareowners who hold shares of common stock on the record date of March 19, 2020 and decide to sell any of those shares before the distribution date should consult their stockbroker, bank or other nominee to understand whether, the shares of UTC common stock will be sold with or without entitlement to Carrier and Otis common stock distributed pursuant to the distributions. It seemed that the cost basis was allocated in the following basis: 55.1705% allocated to Raytheon Technologies (RTX) 26.1402% allocated to Otis Elevator (OTIS) 18.6893% allocated to Carrier (CARR) If I allocate the dividend with the same percentages, as the ones used to split the cost basis, I come up with the … On the first day of ‘regular-way’ trading, shares of RTX opened at $51.00 and closed at $49.93 after trading between $48.05 and $53.30. The documents filed by Raytheon with the SEC may be obtained free of charge at Raytheon's website at www.raytheon.com or at the SEC's website at www.sec.gov. Many diversified companies are electing to spin-off parts of their business finding they can create significant value for shareholders. Follow Otis on LinkedIn, YouTube and as @OtisElevatorCo on Twitter, Facebook and Instagram. The documents filed by UTC with the SEC may be obtained free of charge at UTC's website at www.utc.com or at the SEC's website at www.sec.gov. Founded more than 165 years ago by the inventor of the safety elevator, Otis offers products and services through its companies in approximately 200 countries and territories. The companies are also expected to have significant revenue synergy opportunities from the technologies. You receive 1000 shares of CARR with a Cost Basis of $13,280 (closing price of CARR on 02 April 2020 was $13.28 x 1000 shares). The company, formed through the combination of Raytheon Company and the United Technologies Corporation aerospace businesses, is headquartered in Waltham, Massachusetts. There can be no assurance that the proposed merger, the separation transactions or any other transaction described above will in fact be consummated in the manner described or at all. For additional information on identifying factors that may cause actual results to vary materially from those stated in forward-looking statements, see the joint proxy statement/prospectus (defined below) and the reports of UTC and Raytheon on Forms 10-K, 10-Q and 8-K filed with or furnished to the Securities and Exchange Commission (the "SEC") from time to time. The current valuation factors in the slowdown of the aerospace industry caused by the COVID-19 pandemic, which has hit aerospace companies, especially Boeing Any further expansion is expected to provide the combined company with additional growth opportunities as compared to pre-merger UTC and to enable the combined company to become the leader in advanced technologies. 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