CHARLOTTE, NC (WBTV) One of Charlotte's biggest business is bought for billions. But Goodrich Corp. isn't going bye-bye. Some believe it could be a boon for Banktown.
Goodrich, a major player in the aerospace industry, has called Charlotte home since 1999.
But as of Wednesday night an $18 billion deal means it could soon have a new owner. When the news broke some employees of the Fortune 500 company held their breath.
But they may not need to worry.
In teaming up with the world's largest maker of elevators and air conditioners Goodrich is teaming up with a much bigger player in the aerospace market.
Some are viewing this as a positive sign for the economy. And some people made a lot of money.
"Look out you'll skid.."
Say Goodrich and most people know it as tires.
"The black car didn't skid. It's a Goodrich Tire."
But Goodrich the company hasn't made tires in years. It spun those off years ago.
Since moving its headquarters to Charlotte in 1999 it's operated under the radar. And it's been all about aerospace.
Goodrich - the aircraft components maker.
The deal with United Technologies (based in Hartford, Connecticut) and worth $18.4 billion puts Goodrich under the umbrella of a manufacturing family of familiar names, names like jet engine manufacturer Pratt & Whitney, Carrier Heating and Cooling and Otis Elevator - all part of United Tech.
"There's a strong statement here for the fact that manufacturing in the United States is still alive and kicking.. more so perhaps that most people appreciate," says Charlotte Chamber president Bob Morgan.
Most view the merger and acquisition as a positive for Charlotte.
United Technologies - a much bigger company - will base one of its major divisions - the aerospace division in the Queen City meaning its presence will likely stay the same or could even grow down the road.
"We'll see what the impact is but if history is any guide we may just see the ownership change but the operations stay more or less the same or maybe even enhanced in Charlotte," says Charlotte Mayor Anthony Foxx.
It is a blow however to the Charlotte area's ego.
The area boasted having the headquarters for nine Fortune 500 companies, losing Goodrich will take that number down to eight.
At its headquarters off Tyvola Road near the old Coliseum Goodrich employs 200 people. Another 300 work at a customer-service plant in Monroe.
Since rumors that Goodrich might be sold came out last Friday the company's stock has shot up almost 50-percent.
United Tech paying is Goodrich shareholders $127 a share. The stock was trading at $86 last week.
"It's a big day for the shareholders of Goodrich," says Morgan. "Compliments to (Goodrich CEO) Marshall Larsen and his team for commanding a premium price far beyond anybody's expectation for the business that they have built."
United Technologies borrowed $20 billion to make the sale. Some see the move as a positive for the economy - first that banks were willing to lend and secondly that an American manufacturer was making such a big investment.
The deal still must be approved by shareholders of both companies and regulators. It's expected to close next summer.