United Tech to sell units to BC, Carlyle for $3.5B
Thursday, July 26, 2012
HARTFORD, Conn. (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, N.C., 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 United Technologies CEO Louis Chenevert.
The Hartford, Conn.-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.
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