Merger plans Raytheon Co. announced in June have not taken its Fort Wayne operations out of a growth mode.
Raytheon is among the better-known defense and aerospace contractors operating in northeast Indiana, which also include BAE Systems, General Dynamics, Harris Corp. and Ultra Electronics USSI.
Raytheon’s Fort Wayne operations at 1010 Production Road employ more than 530, “and our presence in Fort Wayne is growing,” said Michael Doble, corporate public relations director.
“Since January, we’ve added more than 50 new hires and (we) will need additional space before the end of 2019,” he said.
“Our Fort Wayne facility supports multiple programs from both Raytheon Space and Airborne Systems and Integrated Defense Systems, including: the Next Generation Jammer; ARC-231 radios; the Electronic Warfare Planning Management Tool; and the Patriot Missile Defense Next Generation User Interface.”
In some of the latest developments with those programs, the Kingdom of Bahrain agreed in August to purchase the company’s Patriot air and missile defense system from the Army, and Raytheon delivered the first Next Generation Jammer Mid-Band Engineering and Manufacturing Development pod to the Navy for the start of ground and aircraft integration testing.
The NGJ-MB is a high-capacity and power airborne electronic attack weapon system for the EA-18G Growler, a carrier-based electronic warfare aircraft. The weapon system was designed to protect air forces by disrupting, degrading and denying threat radars and communication devices.
“The first NGJ-MB pod is out the door,” Stefan Baur, vice president of Raytheon Electronic Warfare Systems, said in a statement on its delivery. “We are one step closer to extending the Navy’s jamming range and capability.
“Delivery of this pod will allow for the initial verification of ground procedures, mass properties, aircraft installation, and built-in test checks in preparation for future chamber and flight test.”
The company plans to use a Prime Power Generation Capability pod installed on a commercial Gulfstream aircraft during the third quarter to conduct power generation flight-testing and risk reduction efforts in support of an initial flight clearance process.
With advanced jamming techniques, the NGJ-MB’s design and architecture include the ability to attack multiple targets simultaneously and operate at a significantly improved range.
Raytheon and United Technologies Corp. announced a plan in June to combine next year to form one of the world’s largest aerospace and defense companies.
United Technologies is known for its Collins Aerospace and Pratt & Whitney aerospace businesses. It has operations in Huntington, which provide its Carrier business with engineering, research and development and administrative support.
The merger has been approved by the boards of both companies. It will exclude Carrier and Otis, which will be separated from United Technologies during the first half of next year, as previously announced.
If the deal receives the required regulatory approvals, Raytheon will consolidate its four businesses into two, which will be called Integrated Defense & Missile Systems and Intelligence, Space & Airborne Systems.
They will join Pratt & Whitney and Collins Aerospace to form the four businesses of the new company, Raytheon Technologies Corp.
With about $74 billion in pro forma sales this year — based on projections of the companies that would create it — Raytheon Technologies would have robust cash generation and a strong balance sheet, and its research and development would benefit from improved financial flexibility and resources.
Raytheon share owners will get 2.3348 shares in the new company for each Raytheon share, a statement on the merger said.
United Technologies share owners will own about 57% of the new company and Raytheon share owners will own close to 43% of it after the merger is completed during the first half of next year.
During a July 25 conference call with securities industry analysts on Raytheon’s second-quarter earnings, Anthony O’Brien, its vice president and chief financial officer, said collaborative merger efforts and integration planning were under way with United Technologies and progressing well.
“We look forward to the next steps in the process; including the definitive proxy filing and the shareholder vote later this year,” he said.
“And post closing, we look forward to Raytheon Technologies delivering strong free cash flow growth and deploying a significant amount of free cash flow to its shareholders in the form of share repurchases and dividends.”
The new, combined company is expected to see more than $1 billion in annual cost synergies with close to $500 million in savings returned to customers by the fourth year after the merger has closed.
With headquarters in the Boston area, the new company’s board will consist of eight directors from United Technologies and seven, including the lead director, from Raytheon.
Kennedy will serve as executive chairman of Raytheon Technologies and Hayes will be its CEO. Hayes will become chairman and CEO of the new company two years after the merger closes.