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United Technologies Reaches Deal for U.K.'s Chubb

The purchase price for the target company is around $1 billion.

United Technologies

(UTX) - Get United Technologies Corporation Report

reached an agreement to acquire the U.K.'s

Chubb PLC

, a provider of electronic security and fire protection products and services, in an all-cash deal.

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The deal, which had been expected, is valued at around $1 billion. The boards of both companies have approved the transaction. Chubb PLC isn't affiliated with insurance company


of the U.S.

London-based Chubb has about 48,000 employees, and the company reported 2002 revenue of $2.5 billion. Chubb has more than 1 million customers worldwide and market-leading positions in the U.K., France, Hong Kong, Canada and Australia.

United's offer price of 75 pence a share represents a premium of 13% to Chubb's closing price of 66.25 pence on April 15, the day before Chubb disclosed the start of talks. United also will assume Chubb's net debt, which was $934 million on April 30.

Additionally, United affirmed its 2003 earnings outlook of $4.55 to $4.80 a share. The company also said cash flow from operations, before pension contributions and after capital expenditures, will be about equal to net income.