WALTHAM, Mass., Oct. 23, 2019 /PRNewswire/ -- Raytheon
Company (NYSE: RTN) Chairman and CEO Thomas
A. Kennedy today announced leadership appointments for the
Raytheon businesses that will be consolidated following the close
of the merger of equals with United Technologies.
Roy Azevedo will be president of
the Intelligence, Space and Airborne Systems, which combines Space
and Airborne Systems (SAS); Intelligence, Information and Services
(IIS); and Forcepoint™. The new business unit will have 2019 sales
of approximately $15 billion.
Wesley D. Kremer will be
president of the Integrated Defense and Missile Systems, which
combines Missile Systems (MS) and Integrated Defense Systems (IDS).
The new business unit will have 2019 sales of approximately
$16 billion.
"Roy and Wes are defense industry veterans with proven track
records developing and delivering advanced technologies. Their
global business acumen and strong customer focus will help ensure
the new Raytheon Technologies Corporation is poised for success
from day one," said Thomas A.
Kennedy.
Today's announcement follows the recent selection of Anthony
"Toby" O'Brien as chief financial officer for the new Raytheon
Technologies. O'Brien is the current CFO of Raytheon Company.
The Raytheon business unit consolidation will be effective upon
merger close, which is expected in the first half of 2020, subject
to the satisfaction of customary closing conditions, including
receipt of required regulatory approvals, as well as completion by
United Technologies of the separation of its Otis and Carrier businesses.
Roy Azevedo
Roy Azevedo was appointed
president of Raytheon SAS in 2018. The business is a leader in the
design, development and manufacture of integrated sensor and
communication systems for advanced missions. These missions include
intelligence, surveillance and reconnaissance; precision
engagement; manned and unmanned aerial operations; electronic
warfare; and space.
With a workforce of 17,600 and 2018 sales of $6.7 billion, Space and Airborne Systems is
headquartered in McKinney, Texas
and operates across the United
States and internationally, overseeing Raytheon UK.
Before being named president of SAS, Azevedo was vice president
and general manager of Raytheon's Intelligence, Surveillance and
Reconnaissance Systems, a mission area within SAS that focuses on
electro-optical/infrared sensors, active electronically scanned
array/scanning radars, and various special mission aircraft
solutions to provide customers with actionable information for
strike and persistent surveillance.
The new Intelligence, Space and Airborne Systems business which
Azevedo will lead, pairs his existing business unit with Raytheon's
Intelligence, Information and Services business, and the company's
commercial cybersecurity unit, Forcepoint™. The newly combined
business will offer world-class airborne and space sensors,
electronic warfare and communications systems, cybersecurity and
cyber analytics capabilities, advanced air traffic control
technologies, ground-based space logistics, training, and
engineering services. It will also provide artificial intelligence
and machine learning capabilities, and mission support.
Azevedo, who joined Raytheon in 1989, also serves as a member of
the Raytheon Saudi Arabia, Raytheon UK and Raytheon Australia
Boards of Directors.
Wesley D. Kremer
Wes Kremer currently serves as
president of Raytheon Missile Systems, after being appointed to the
role in March 2019. Missile Systems
is the world's leading producer of weapon systems for the United States military and the allied
forces of more than 50 countries. It produces defensive and
offensive weapons for air, land, sea and space, including
interceptors for U.S. ballistic missile defense. The business
continually develops and invests in new, innovative technologies
such as hypersonic and counter-hypersonic weapons and directed
energy systems to provide rapid, high-quality, affordable mission
capability to its customers. It had 2018 sales of $8.3 billion and employs more than 16,000 people.
Headquartered in Tucson, Arizona,
Missile Systems also has locations in Alabama, Arkansas, Kentucky, New
Mexico, Oklahoma and
Texas, as well as oversight of
Raytheon Emirates, where Kremer serves as board chair.
Prior to leading MS, Kremer was president of Raytheon's
Integrated Defense Systems business, which is headquartered in
Tewksbury, Massachusetts with 31
locations around the world and operational oversight of Raytheon
Saudi Arabia. Its broad portfolio of weapons, sensors and
integration systems supports its customer base across multiple
mission areas, including air and missile defense systems; missile
defense radars; early warning radars; naval ship radar systems;
C5I® products and services; and other advanced
technologies.
Kremer also served 11 years in the U.S. Air Force as a weapon
systems officer, flying the F-111 and F-15E, with more than 1,500
hours of flight time in fighter aircraft, including over 90 combat
sorties. He joined Raytheon in 2003.
Anthony "Toby" O'Brien
Toby O'Brien was named chief
financial officer for the future Raytheon Technologies Corporation
on September 12, 2019. He currently
serves as vice president and chief financial officer of Raytheon
Company where he directs the company's overall financial strategy.
His responsibilities include financial reporting and controls,
merger and acquisition activity, planning and analysis, investor
relations, tax and treasury.
Prior to his current position, O'Brien was vice president of
finance and chief financial officer for Raytheon IDS. He has also
served as Raytheon vice president of finance, CFO of Raytheon
Aircraft Company and has held other senior finance positions across
Raytheon.
O'Brien joined Raytheon in 1986.
About Raytheon
Raytheon Company, with 2018 sales of $27
billion and 67,000 employees, is a technology and innovation
leader specializing in defense, civil government and cybersecurity
solutions. With a history of innovation spanning 97 years, Raytheon
provides state-of-the-art electronics, mission systems integration,
C5I® products and services, sensing, effects, and
mission support for customers in more than 80 countries.
Raytheon is headquartered in Waltham, Massachusetts. Follow us on
Twitter.
Cautionary Statement Regarding Forward-Looking
Statements
This communication contains statements which, to the extent they
are not statements of historical or present fact, constitute
"forward-looking statements" under the securities laws. From time
to time, oral or written forward-looking statements may also be
included in other information released to the public. These
forward-looking statements are intended to provide Raytheon
Company's ("Raytheon") and United Technologies Corporation's
("UTC") respective management's current expectations or plans for
our future operating and financial performance, based on
assumptions currently believed to be valid. Forward-looking
statements can be identified by the use of words such as "believe,"
"expect," "expectations," "plans," "strategy," "prospects,"
"estimate," "project," "target," "anticipate," "will," "should,"
"see," "guidance," "outlook," "confident," "on track" and other
words of similar meaning. 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 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, 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. All forward-looking statements involve risks, uncertainties
and other factors that may cause actual results to differ
materially from those expressed or implied in the forward-looking
statements. For those statements, we claim the protection of the
safe harbor for forward-looking statements contained in the U.S.
Private Securities Litigation Reform Act of 1995. 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 and natural
disasters, 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 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 indebtedness that may be incurred in connection with the
proposed merger 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 pending 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 one or both of the parties to terminate the merger
agreement; (20) risks relating to the value of the UTC shares
to be issued in the proposed merger, significant transaction costs
and/or unknown liabilities; (21) the possibility that the
anticipated benefits from the proposed merger 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 Raytheon,
UTC, 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) expected
financing transactions undertaken in connection with the proposed
merger 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 Raytheon
and UTC 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. There can be no assurance that the
proposed merger, the separation transactions or any other
transaction described above will in fact be consummated in the
manner described or at all. 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. Any forward-looking statement speaks only as of
the date on which it is made, and UTC and Raytheon assume no
obligation to update or revise such statement, whether as a result
of new information, future events or otherwise, except as required
by applicable law.
Additional Information and Where to Find It
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"). The registration statement was declared
effective by the SEC on September 9, 2019, and UTC and
Raytheon commenced mailing the joint proxy statement/prospectus to
shareowners of UTC and stockholders of Raytheon on or about
September 10, 2019. Each party will file other documents
regarding the proposed merger with the SEC. In addition, in
connection with the separation transactions, subsidiaries of UTC
will file registration statements on Form 10 or Form S-1.
INVESTORS AND SECURITY HOLDERS ARE URGED TO READ THE JOINT PROXY
STATEMENT/PROSPECTUS AND OTHER RELEVANT DOCUMENTS FILED OR THAT
WILL BE FILED WITH THE SEC WHEN THEY BECOME AVAILABLE, BECAUSE THEY
CONTAIN OR WILL CONTAIN IMPORTANT INFORMATION. Investors and
security holders may obtain copies of the registration statements
and the joint proxy statement/prospectus free of charge from the
SEC's website or from UTC or Raytheon. 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. These documents
may also be obtained free of charge from UTC by requesting them by
mail at UTC Corporate Secretary, 10 Farm Springs Road, Farmington, CT, 06032, by telephone at
1-860-728-7870 or by email at corpsec@corphq.utc.com. 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. 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 invest@raytheon.com.
No Offer or Solicitation
This communication shall not constitute an offer to sell or the
solicitation of an offer to buy any securities, nor shall there be
any sale of securities in any jurisdiction in which such offer,
solicitation or sale would be unlawful prior to registration or
qualification under the securities laws of any such jurisdiction.
No offering of securities shall be made except by means of a
prospectus meeting the requirements of Section 10 of the U.S.
Securities Act of 1933, as amended.
Media Contact
Corinne
Kovalsky
781-522-5899
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SOURCE Raytheon Company