UTC to divest Hamilton units to Carlyle Group, BC Partners for $3.46 bn
26 Jul 2012
US aerospace and defence contractor United Technologies Corp (UTC) yesterday struck a deal to sell three units of its Hamilton Sundstrand subsidiary to private equity firms Carlyle Group and BC Partners for $3.46 billion, in order to fund its acquisition of rival Goodrich Corp (See: United Technologies in talks to acquire rival Goodrich in $11 bln deal: report).
Washington-based Carlyle and European buyout firm BC Partners have teamed up to buy the Milton Roy Co, Sullair Corp, and Sundyne Corp.
Hamilton Sundstrand's pump and compressor-making units comprises Milton Roy Company and Sundyne Corporation, which make fluid control products and pumps, and Sullair is one of the world's leading air compressor manufacturers.
The sale is part of the Connecticut-based company's plan to divest some units to fund its September 2011 acquisition of rival Goodrich Corp for $16.5-billion (See: United Technologies divesting to fund Goodrich acquisition).
''As previously announced, proceeds from the sale will be used to repay a portion of the short-term debt incurred to finance the proposed acquisition of Goodrich Corporation,'' the company said in a statement.
UTC, which also owns the Otis brand of elevators and escalators, had earlier said that it would to sell its Rocketdyne space unit, Clipper Windpower and pump and compressor-making units of Hamilton Sundstrand in order to fund the acquisition.