United Technologies To Buy GE's Security Business

HARTFORD, Conn. (AP) — United Technologies Corp. said Thursday it will buy General Electric Co.'s fire detection and electronic security business for $1.82 billion in a deal to expand its similar operations in North America.

United Technologies already sells portable fire extinguishers, consumer security systems and gas and flame detection products.

GE Security, which is based in Bradenton, Fla., supplies technologies such as its Vigilant-brand fire alarm systems, along with intrusion alarms and video surveillance and access control systems. The business, which is expected to have 2009 revenue of $1.2 billion, has eight manufacturing facilities and about 4,700 employees in 26 countries.

The deal is subject to regulatory approval.

United Technologies said buying GE Security won't affect earnings next year due to restructuring and transaction costs but will likely generate growth in 2011 and beyond.

While United Technologies did not say layoffs would result from the deal, Ari Bousbib, UTC's president of commercial companies, said at a conference in New York that the acquisition will generate "significant cost synergies."