United Tech to sell units to BC, Carlyle for $3.5B

Jul 26, 2012

(AP) — United Technologies Corp. said Wednesday that is selling three industrial-products businesses for $3.46 billion as it seeks to fund its proposed acquisition of aerospace-parts maker Goodrich Corp.

The three units of United Technologies' Hamilton Sundstrand division are being bought by private-equity firms BC Partners and The Carlyle Group.

United Technologies said proceeds from the sale will be used to repay some of the short-term debt needed to finance its $16.5 billion acquisition of Goodrich, which is based in Charlotte, North Carolina, and makes jet components such as landing wheels and brakes.

The sale of Milton Roy Co., Sullair Corp. and Sundyne Corp. is subject to regulatory approval and the deal is expected to close by the end of the year. United Technologies had announced earlier this year that it planned to sell the units, which make products ranging from rotary-screw compressors to high-speed centrifugal pumps.

United Technologies Corp. is also selling off other divisions, including its Rocketdyne engine-making unit and Clipper Windpower, as it focuses on its core aerospace and building-systems businesses.

Wednesday's announced sale "represents another significant step forward in our ongoing portfolio transformation," said CEO Louis Chenevert.

The Hartford, Connecticut-based company owns jet engine maker Pratt & Whitney, Otis elevator, Sikorsky Aircraft and other companies. Its shares rose $1.39, or 1.9 percent, to $74 in after-hours trading following the announcement the units' sale.

Explore further: Android grabs 85% of smartphone market: survey

not rated yet
add to favorites email to friend print save as pdf

Related Stories

UTC to sell Rocketdyne unit to GenCorp for $550M

Jul 23, 2012

(AP) — United Technologies is selling its engine division unit to aerospace manufacturer GenCorp Inc. for $550 million as the conglomerate raises money for its largest acquisition and solidifies its core aerospace business.

Hyundai says it will not bid for Hynix stake

Jul 06, 2011

South Korea's Hynix Semiconductor Wednesday lost its sole potential buyer after shipmaking giant Hyundai Heavy Industries said it would not bid for a stake in the world's second-largest memory chip maker.

Canada won't review $4.5B sale of Nortel patents

Jul 19, 2011

(AP) -- The $4.5 billion sale of Nortel's patent portfolio to a consortium including Research In Motion Ltd. cleared another hurdle Tuesday as the Canadian government said the deal does not need to be reviewed under the ...

UTC exported software used in Chinese helicopter

Jun 28, 2012

(AP) — A division of United Technologies Corp. pleaded guilty on Thursday to crimes related to the illegal export of software that U.S. officials say was used by China to develop the country's first modern military attack ...

Recommended for you

Android grabs 85% of smartphone market: survey

2 hours ago

Smartphones powered by the Android operating system captured 85 percent of the worldwide market in the second quarter, threatening to marginalize rival platforms, a new survey shows.

Chinese man brings gay conversion therapy lawsuit

7 hours ago

(AP)—A gay Chinese man said Thursday he was suing a psychological clinic for carrying out electric shocks intended to turn him straight, as well as the search engine giant Baidu for advertising the center.

Alcatel loss narrows in 2Q but revenue stagnates

8 hours ago

(AP)—Telecommunications equipment company Alcatel-Lucent SA says its net loss narrowed in the second quarter thanks to lower accounting charges, while revenue stagnated and restructuring charges mounted.

User comments : 0