Follow Otis on LinkedIn, YouTube and as @OtisElevatorCo on Twitter, Facebook and Instagram. By combining a passion for science with precision engineering, the company is creating smart, sustainable solutions the world needs. Opinions expressed by Forbes Contributors are their own. Otis Elevator Company is the world’s leading manufacturer of people-moving products, including elevators, escalators, and moving walkways, with significant recurring revenue from long-term maintenance contracts. March 11, 2020 ... or foreign tax consequences, as applicable, of the Carrier and Otis distributions. To effect the separations, the UTC Board of Directors declared a pro rata dividend of Carrier Global Corporation (NYSE: CARR) common stock and Otis Worldwide Corporation (NYSE: OTIS) common stock to be made effective at 12:01 a.m. EDT on April 3, 2020 to UTC's shareowners of record as of 5:00 p.m. EDT on March 19, 2020, the record date for the distribution. Cision Distribution 888-776-0942 Founded 165 years ago, Otis a leader in the approximately $75 billion global elevator and escalator industry. Otis is the world's leading manufacturer and maintainer of people-moving products, including elevators, escalators and moving walkways. Carrier and Otis Well Positioned In the Market Place Post Spin-Off. 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. - "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. AAPL 7 for 1 Split. from 8 AM - 9 PM ET, HVAC (Heating, Ventilation and Air-Conditioning), Machine Tools, Metalworking and Metallurgy, Aboriginal, First Nations & Native American. ZG Spinoff of Z shares, 2 for 1, 32.55% remaining basis 8/17/2015. 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 has a network of more than 69,000 employees, including approximately 1,300 engineers, 4,200 sales employees and 40,000 field technicians. For more information about Otis, visit www.otis.com. I am the author of the book Spin. "As standalone public companies, Carrier and Otis are each well-positioned to drive sustained growth and innovation, with more focused business strategies that will enable them to maximize value for their customers and shareowners. 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. Now change FAKE's name to Carrier and UTC's name to RTX. It merged with the Raytheon Company in April 2020 to form Raytheon Technologies. The assigned multiple is at a 3.9% discount to its median peer multiple. 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. Shares of Otis Worldwide Corp opened at $43.75 and closed at $47.32 after trading between $41.80 and $49.30. Spin-Offs often result in higher aggregate value for the constituent pieces. Each distribution remains subject to certain conditions described in Carrier's and Otis' respective Registration Statements on Forms 10, as amended, including the Forms 10 having been declared effective by the U.S. Securities and Exchange Commission. (Photo credit should read JIM WATSON,NOVA SAFO/AFP via Getty Images). We arrive at an average intrinsic value for Raytheon Technologies (RTX) at $58.00 per share. Additional Information and Where to Find It. 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. Many diversified companies are electing to spin-off parts of their business finding they can create significant value for shareholders. Following the completion of the separations on April 3, 2020, Carrier and Otis common stocks will begin "regular way" trading on the NYSE. United Technologies Board Of Directors Approves Separation Of Carrier And Otis And Declares Spin Off Distribution Of Carrier And Otis Shares … These documents may also be obtained free of charge from Raytheon by requesting them by mail at Raytheon Company, Investor Relations, 870 Winter Street, Waltham, MA, 02451, by telephone at 1-781-522-5123 or by email at [email protected]. Gov. Calculating Tax Basis for Spinoff Investments. 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. Both Otis and Carrier will be included in the S&P 500 index; so there will be no index-based selling. Our goal continues to be to have the merger ready to close concurrent with the portfolio separation. Avago Technologies purchase of LSI. We cannot and do not advise you. Tax treatment varies with circumstances. 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. In addition to being a Forbes contributor, I have been featured or quoted in various media such as Barron’s, The Wall Street Journal, Bloomberg, Business Week and Fox Business. With the highly complementary portfolios and the opportunity to combine world-class R&D platforms, the companies can effectively invest, innovate, and serve customers. United Technologies Corp., parent company of jet engine maker Pratt & Whitney, plans to spin off its iconic Otis Elevator and Carrier brands to focus on aviation. With a total employee strength of 195,000, the company delivers solutions that push the boundaries in quantum physics, electric propulsion, directed energy, hypersonics, avionics and cybersecurity. The all-stock merger structure will allow shareowners of both companies to participate in the future upside potential of the combined businesses. Raytheon Technologies Corporation is an aerospace and defense Company that provides advanced systems and services for commercial, military and government customers worldwide. Post-separation, Otis and Carrier began trading ‘Regular-Way’ on 4/3, and United Technologies completed its merger with Raytheon and began trading under the new name Raytheon Technologies. UTC shareowners are encouraged to consult with their financial and tax advisors regarding the specific implications of the Carrier and Otis distributions, including the specific implications of buying or selling UTC common stock on or before the distribution date and the U.S. federal, state and local or foreign tax consequences, as applicable, of the Carrier and Otis distributions. For FY19, the business delivered a subdued performance and we expect the business to have slightly lower revenue and EBIT growth over the next two years. ENLC - CEI Dividend reclassification information. The company, formed through the combination of Raytheon Company and the United Technologies Corporation aerospace businesses, is headquartered in Waltham, Massachusetts. United Technologies to split itself in three, spinning off Otis and Carrier United Technologies’ Pratt & Whitney division supplies the engine for the F-35 plane. 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. United Technologies Board Of Directors Approves Separation Of Carrier And Otis And Declares Spin Off Distribution Of Carrier And Otis Shares. 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. United Technologies Board Of Directors Approves Separation Of Carrier And Otis And Declares Spin Off Distribution Of Carrier And Otis Shares - "When-issued" trading expected to begin on March 18, 2020 We initiate coverage on RTX with a ‘Buy’ rating and an implied upside of 16.2% from the current market price of $49.93 as on 4/3. For more information, visit www.Corporate.Carrier.com or follow Carrier on social media at @Carrier. The current valuation factors in the slowdown of the aerospace industry caused by the COVID-19 pandemic, which has hit aerospace companies, especially Boeing Our average fair value estimate for Carrier (Spin-Of 2) stands at $21.50 per share based on 2020e EV/ EBITDA multiple of 9.8x. On November 26, 2018, United Technologies Corp. For those statements, we claim the protection of the safe harbor for forward-looking statements contained in the U.S. We initiate coverage on CARR with a ‘Buy’ rating and an implied upside of 27.1% from the current market price of $16.92 as on 4/3. 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. 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. Otis recorded sales of $13.1 billion in FY19. The following describes, in general terms, a typical tax basis calculation for United States spinoffs. BEAV spinoff of KLXI. The stock of Carrier and Otis, units spun off by United Technologies, also … Carrier is a leading global provider of innovative heating, ventilating and air conditioning (HVAC), refrigeration, fire, security and building automation technologies. 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. had announced tax-free spin-off of its Otis and Carrier businesses, into new, independent publicly traded companies to be named Otis Worldwide Corp and Carrier Global Corp. On April 3, 2020, United Technologies Corp, renamed as Raytheon Technologies (NYSE: RTX, $49.93, Market Capitalization: $75.7 billion) completed the tax-free spin-off of Otis Worldwide Corp (NYSE: OTIS, $47.32, Market Capitalization $20.5 billion) and Carrier Global Corp (NYSE: CARR, $16.92, Market Capitalization $14.7 billion). For example, during the spin-off conference call CFO Akhil Johri told analysts to expect one-time tax costs of $2.5 billion to $3 billion from separating around 1,200 legal entities United Technologies … You receive 500 shares of OTIS with a Cost Basis of $22,000 (closing price of OTIS on 02 April 2020 was $44.00 x … It comprises four industry-leading businesses – Collins Aerospace Systems, Pratt & Whitney, Raytheon Intelligence & Space and Raytheon Missiles & Defense. Headquartered in Waltham, Mass., Raytheon Technologies is one of the largest In connection with the proposed merger, on September 4, 2019, UTC filed with the SEC an amendment to the registration statement on Form S-4 originally filed on July 17, 2019, which includes a joint proxy statement of UTC and Raytheon that also constitutes a prospectus of UTC (the "joint proxy statement/prospectus"). © 2021 Forbes Media LLC. 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. Similarly, shares of Carrier Global Corp opened at $13.75 and closed at $16.92 after trading between $13.38 and $17.00. FARMINGTON, Conn., March 11, 2020 /PRNewswire/ -- United Technologies Corp. (NYSE: UTX) announced today that its Board of Directors approved the previously announced separations of Carrier and Otis. Prior to this, UTX announced its intent to spin off its non-aerospace businesses, elevator company Otis Worldwide Corp. and HVAC maker Carrier Global Corp. 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. Ned Lamont said Tuesday that the headquarters of Otis Elevator will remain in Connecticut after its spinoff from United Technologies Corporation, and … CEI Cash Plus Stock Merger with ENLC. … 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 … Such risks, uncertainties and other factors include, without limitation: (1) the effect of economic conditions in the industries and markets in which UTC and Raytheon operate in the U.S. and globally and any changes therein, including financial market conditions, fluctuations in commodity prices, interest rates and foreign currency exchange rates, levels of end market demand in construction and in both the commercial and defense segments of the aerospace industry, levels of air travel, financial condition of commercial airlines, the impact of weather conditions, pandemic health issues and natural disasters, and the financial condition of our customers and suppliers, and the risks associated with U.S. government sales (including changes or shifts in defense spending due to budgetary constraints, spending cuts resulting from sequestration, a government shutdown, or otherwise, and uncertain funding of programs); (2) challenges in the development, production, delivery, support, performance and realization of the anticipated benefits (including our expected returns under customer contracts) of advanced technologies and new products and services; (3) the scope, nature, impact or timing of the proposed merger with Raytheon and the separation transactions and other merger, acquisition and divestiture activity, including among other things the integration of or with other businesses and realization of synergies and opportunities for growth and innovation and incurrence of related costs and expenses; (4) future levels of indebtedness, including any indebtedness incurred in connection with the proposed merger with Raytheon and the separation transactions, and capital spending and research and development spending; (5) future availability of credit and factors that may affect such availability, including credit market conditions and our capital structure; (6) the timing and scope of future repurchases by the combined company of its common stock, which may be suspended at any time due to various factors, including market conditions and the level of other investing activities and uses of cash; (7) delays and disruption in delivery of materials and services from suppliers; (8) company and customer-directed cost reduction efforts and restructuring costs and savings and other consequences thereof (including the potential termination of U.S. government contracts and performance under undefinitized contract awards and the potential inability to recover termination costs); (9) new business and investment opportunities; (10) the ability to realize the intended benefits of organizational changes; (11) the anticipated benefits of diversification and balance of operations across product lines, regions and industries; (12) the outcome of legal proceedings, investigations and other contingencies; (13) pension plan assumptions and future contributions; (14) the impact of the negotiation of collective bargaining agreements and labor disputes; (15) the effect of changes in political conditions in the U.S. and other countries in which UTC, Raytheon and the businesses of each operate, including the effect of changes in U.S. trade policies or the U.K.'s withdrawal from the European Union, on general market conditions, global trade policies and currency exchange rates in the near term and beyond; (16) the effect of changes in tax (including U.S. tax reform enacted on December 22, 2017, which is commonly referred to as the Tax Cuts and Jobs Act of 2017), environmental, regulatory and other laws and regulations (including, among other things, export and import requirements such as the International Traffic in Arms Regulations and the Export Administration Regulations, anti-bribery and anti-corruption requirements, including the Foreign Corrupt Practices Act, industrial cooperation agreement obligations, and procurement and other regulations) in the U.S. and other countries in which UTC, Raytheon and the businesses of each operate; (17) negative effects of the announcement or pendency of the proposed merger or the separation transactions on the market price of UTC's and/or Raytheon's respective common stock and/or on their respective financial performance; (18) the ability of the parties to receive the required regulatory approvals for the proposed merger (and the risk that such approvals may result in the imposition of conditions that could adversely affect the combined company or the expected benefits of the transaction) and to satisfy the other conditions to the closing of the merger on a timely basis or at all; (19) the occurrence of events that may give rise to a right of UTC or Raytheon or both to terminate the merger agreement; (20) risks relating to the value of the UTC shares to be issued in the proposed merger with Raytheon, significant transaction costs and/or unknown liabilities; (21) the possibility that the anticipated benefits from the proposed merger with Raytheon cannot be realized in full or at all or may take longer to realize than expected, including risks associated with third party contracts containing consent and/or other provisions that may be triggered by the proposed transaction; (22) risks associated with transaction-related litigation; (23) the possibility that costs or difficulties related to the integration of UTC's and Raytheon's operations will be greater than expected; (24) risks relating to completed merger, acquisition and divestiture activity, including UTC's integration of Rockwell Collins, including the risk that the integration may be more difficult, time-consuming or costly than expected or may not result in the achievement of estimated synergies within the contemplated time frame or at all; (25) the ability of each of UTC, Raytheon and the companies resulting from the separation transactions and the combined company to retain and hire key personnel; (26) the expected benefits and timing of the separation transactions, and the risk that conditions to the separation transactions will not be satisfied and/or that the separation transactions will not be completed within the expected time frame, on the expected terms or at all; (27) the intended qualification of (i) the merger as a tax-free reorganization and (ii) the separation transactions as tax-free to UTC and UTC's shareowners, in each case, for U.S. federal income tax purposes; (28) the possibility that any opinions, consents, approvals or rulings required in connection with the separation transactions will not be received or obtained within the expected time frame, on the expected terms or at all; (29) any financing transactions undertaken in connection with the proposed merger with Raytheon and the separation transactions and risks associated with additional indebtedness; (30) the risk that dissynergy costs, costs of restructuring transactions and other costs incurred in connection with the separation transactions will exceed UTC's estimates; and (31) the impact of the proposed merger and the separation transactions on the respective businesses of UTC and Raytheon and the risk that the separation transactions may be more difficult, time-consuming or costly than expected, including the impact on UTC's resources, systems, procedures and controls, diversion of its management's attention and the impact on relationships with customers, suppliers, employees and other business counterparties. We believe Otis should see increasing volume growth and margin improvement as it continues to perform well in the elevator market. In our experience brokers tend to use the prices found in the guidance companies post on their websites, including IRS form 8937. On Friday April 3 rd 2020, the newly formed Raytheon Technologies (RTX) completed its merger of Raytheon Company (RTN) and United technologies Corporation (UTC). This would be critical, given the complex and rapidly evolving industry landscape. The combined company’s expected enhanced technology and research and development capabilities, with a combined annual company and customer funded R&D spend of approximately $8 billion, over 60,000 engineers and 38,000+ patents, would help the combined company develop advanced products to meet customer priorities and the national defense strategies of the United States and its allies. 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. Our average fair value estimate for Otis (Spin-Off 1) stands at $52.00 per share based on 2020e EV/EBITDA multiple of 13.0x. Beginning on or around March 18, 2020 and continuing up to and through the distribution date, there will be two markets in UTC common stock on theNYSE: a "regular-way" market under the symbol "UTX," in which UTC shares will trade with the right to receive shares of Carrier and Otis common stock distributed pursuant to the distributions, and an "ex-distribution" market under the symbol "UTX-WI," in which UTC shares will trade without the right to receive shares of Carrier and Otis common stock distributed pursuant to the distributions. FAKE can now be hidden and it should be: dropping $23.66 per share in one day. Above, an F-35B Lightning II. The Otis brand is recognized across the globe, and our products are installed in some of the world’s most recognizable buildings. United Technologies Board Of Directors Approves Separation Of Carrier And Otis And Declares Spin Off Distribution Of Carrier And Otis Shares 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. Raytheon Technologies Price Performance and Top 5 Shareholders. No action is required by UTC shareowners to receive shares of Carrier and Otis common stock in the Carrier and Otis distributions. FARMINGTON, Conn., March 11, 2020 /PRNewswire/ -- United Technologies Corp. (NYSE: UTX) announced today that its Board of Directors approved the previously announced separations of Carrier and Otis. "We are taking another important step in the transformation of UTC and the establishment of two independent companies that are leaders in their respective industries with attractive investment profiles," said UTC Chairman and Chief Executive Officer Gregory Hayes. The … 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 holder’s original cost basis in UTX will be allocated among RTX, Carrier, and Otis shares received. Forward-looking statements may include, among other things, statements relating to future sales, earnings, cash flow, results of operations, uses of cash, share repurchases, tax rates, R&D spend, other measures of financial performance, potential future plans, strategies or transactions, credit ratings and net indebtedness, other anticipated benefits of the Rockwell Collins acquisition, the proposed merger with Raytheon Company ("Raytheon") or the spin-offs by UTC of Otis and Carrier into separate independent companies (the "separation transactions"), including estimated synergies and customer cost savings resulting from the proposed merger with Raytheon, the expected timing of completion of the proposed merger and the separation transactions, estimated costs associated with such transactions and other statements that are not historical facts. Hayes told industry analysts in January 2019 that costs to separate UTC into three businesses — aerospace, Otis and Carrier — are estimated at between $2.5 billion and $3 billion.