United Technologies Corp. has reached an agreement to sell its Sikorsky Aircraft business to Lockheed Martin Corp. for $9bn in cash.

The transaction, which is subject to regulatory approvals and customary closing conditions and adjustments, is projected to close by year-end or in the first quarter of 2016. Proceeds from the sale are expected to be used to fund additional share repurchase to offset the earnings impact related to the sale.

“We are very pleased to announce this transaction,” said UTC President and Chief Executive Officer Gregory Hayes. “Exiting the helicopter business will allow UTC to better focus on providing high-technology systems and services to the aerospace and building industries and to deliver improved and sustained value to our customers and shareowners.

“Sikorsky’s acquisition by Lockheed Martin, one of the world’s leading aerospace and defense companies, will ensure it remains a technology leader at the forefront of vertical lift,” Hayes added. “We are committed to working closely with Lockheed Martin to execute a seamless transition for customers and employees.”

Sikorsky's new S-76D helicopter

UTC’s Board of Directors has authorized a share repurchase program for up to 75 million shares of the company’s common stock, which would be worth approximately $8.3bn based on the NYSE closing price of UTC shares on July 17. The new authorization replaces a previous program, approved in February 2013, which was nearing completion. The precise timing and amount of repurchases will be determined based on the company’s evaluation of market conditions and other factors, and the program may be suspended or discontinued at any time.

J.P. Morgan Securities LLC is serving as UTC’s financial advisor, and Wachtell, Lipton, Rosen & Katz as its legal advisor for the sale.