United Technologies Corp. (UTX - Free Report) recently divested its UTC Power fuel cells business to ClearEdge Power for an undisclosed amount. The strategic move is consistent with its long-term strategy to reposition its portfolio to focus on the core business of aerospace and building systems.
Headquartered in Hillsboro, Ore, ClearEdge Power offers ultra-clean and efficient on-site energy generation systems for homes and small businesses. The company has operations across the West Coast of the U.S. Since its inception in 2003, ClearEdge Power has evolved as a premier provider of fuel cell stacks, fuel processing, and integrated balance of systems.
The acquisition of UTC Power fuel cells unit is likely to reap synergistic benefits for ClearEdge Power as the former is widely renowned to produce fuel cells that offer clean, reliable power for buildings and vehicles. To add a feather to its cap, UTC Power fuel cells were also used on all U.S. manned space flights as an industry pioneer. Consequently, the transaction gives unrivalled advantage to ClearEdge Power and brings it on the forefront of green, secure, distributed generation.
Based in Hartford, Conn, United Technologies provides high-end technology products and services to the building systems and aerospace industries worldwide. The company is a diversified business conglomerate serving various end markets such as aerospace, defense and commercial construction. The business diversification allows the company to remain profitable amid tough economic times.
The operations of the company are primarily classified into two principal businesses: commercial and aerospace. Under its commercial business, the company has Otis and the UTC Climate, Controls & Security division which combined the former Carrier and UTC Fire & Security divisions. The aerospace business of the company consists of Sikorsky aircraft and the UTC Propulsion & Aerospace Systems, which includes UTC Aerospace Systems and Pratt & Whitney divisions.
United Technologies faces intense competition from industry bigwigs such as Federal Signal Corp. (FSS - Free Report) , China Merchants Holdings (International) Company Limited , and Jardine Strategic Holdings Ltd. , each carrying a Zacks Rank #1 (Strong Buy). United Technologies presently has a Zacks Rank #3 (Hold).