Back to top

Analyst Blog

United Technologies Corp. (UTX - Analyst Report) recently announced the signing of an agreement to divest its Pratt & Whitney Power Systems unit, which is currently a part of Pratt & Whitney, to Mitsubishi Heavy Industries (MHI). With the divestiture of its Power Systems Unit, United Technologies intends to better focus on its aerospace and commercial businesses.

The terms of the deal remained undisclosed but the transaction is expected to close by the second quarter of 2013, subject to regulatory approvals and customary closing conditions.  

Pratt & Whitney Power Systems unit primarily deals with the engineering, assembly and sales of aero-derivative gas turbines and also provides services related to gas turbines and engineering, procurement and construction of related power generation systems. This business is an excellent fit for Mitsubishi as it is mainly focused on gas turbines business 

Through this acquisition, Mitsubishi Heavy Industries is expected to expand its power generation product portfolio. Pratt & Whitney Power Systems aero-derivative gas turbines are highly recognized worldwide, for their integrated design and quick start-up time. Apart from this deal, both these companies have worked together for an aero-engine production.

Moreover, Mitsubishi is presently looking to establish a global structure to substantially increase manufacturing capacity of high temperature high-output gas turbines annually.

In 2012, Mitsubishi announced a Medium-Term Business Plan, to primarily set a policy for full utilization of its strengths and synergy. Thereby it reorganized its business segments into four domains. Among the four business domains, the company is currently considering the Energy & Environment segment to have the highest importance. The acquisition of Pratt & Whitney’s Pumps is a part of this business plan.

Pratt & Whitney, a division of United Technologies is leading player in the design, manufacture and service of aircraft engines, space propulsion systems and industrial gas turbines.

United Technologies currently has a Zacks Rank #3, implying a short-term Hold rating on the stock.

Please login to or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research


Are you a new Zacks Member or a visitor to

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
SIGNET JEWE… SIG 116.37 +7.72%
INSITE VISI… INSV 0.30 +7.11%
CHYRONHEGO… CHYR 2.72 +5.84%
US SILICA H… SLCA 70.72 +4.00%
MALLINCKROD… MNK 80.11 +2.32%