UTX to Sell UK Guarding Business - Analyst Blog

UTC Fire & Security, a business unit of United Technologies Corporation (UTX), has agreed to sell off its UK manned guarding business, Chubb Security Personnel Limited, to a Sweden-based security provider affiliated to Securitas AB.

The deal is expected to close in the first quarter of 2011, subject to certain customary conditions. The divesture will allow the company to concentrate on its high technology content operations, supporting growth and efficiently fulfilling customer demands.

Operating through 19 locations in the UK and with employee strength of about 5000 people, Chubb Security Personnel Limited serves both public and private sector customers, offering them permanent and temporary manned guarding services. Chubb Security Personnel is a good business performer, with sales amounting to more than £100 million and complementing the business of Securitas.

United Technologies has strong market positions in aerospace/defense and global infrastructure with a portfolio that includes: Carrier, Otis, Hamilton Sundstrand, Pratt & Whitney, Sikorsky and Fire & Security. The company continues to invest in game-changing technology across the business. UTC Fire & Security is a global provider of security and fire safety products and services.

The company designs, manufactures and services products that incorporate advanced technologies. The introduction of new products and technologies involves risks, and the degree or timing of benefits may not be correctly anticipated. Further, the company's international operations are subject to economic risks, and results of operations may be adversely affected by changes in economic conditions, foreign currency fluctuations and changes in local government regulation.

Headquartered in Connecticut, U.S, United Technologies Corporation was incorporated in Delaware in 1934. The company provides high technology products and services to the building systems and aerospace industries worldwide. Growth is attributable to acquisitions and the internal development of existing businesses. United Technologies Corp.'s operating units include businesses with operations throughout the world. Major competitors of UTX are Boeing Co. (BA) and General Electric Co. (GE).

We currently maintain our Neutral rating on United Technologies, with a Zacks #3 Rank (Hold recommendation) over the next one-to-three months.

 
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