United Technologies divesting to fund Goodrich acquisition

United Technologies Corp (UTC), the $54-billion aerospace and defence contractor and maker of the Black Hawk helicopter, is evaluating the sale of its pump and compressor-making units in order to raise money to fund its largest-ever acquisition, Reuters yesterday reported, citing sources.

The sale of these units, which are part of UTC's Hamilton Sundstrand division, may fetch the Hartford, Connecticut-based company around $3.5 billion and lessen the amount of shares it may require to sell to fund its planned $16.5 billion acquisition of Goodrich Corp.

Goldman Sachs, which has been hired by UTC as financial adviser for the sale, has reached out to a number of potential strategic buyers and private equity firms to gauge their interest, the sources told the news agency.

The sale of Hamilton Sundstrand's pump and compressor-making units comprises of Milton Roy Company and Sundyne Corporation, which makes fluid control products and pumps, and Sullair, one of the world's leading air compressor manufacturers.

Potential buyers for Milton Roy and Sundyne could be SPX Corp, Flowserve Corp, Dover Corp, Weir Group Plc, Sulzer AG, Pentair Inc and Tyco International, while Sullair could evoke the interest of Atlas Copco AB, Gardner Denver Inc and Engel, the sources told Reuters.

In September 2011, UTC offered to buy Aircraft components maker Goodrich Corp for $18.4-billion in cash, including the assumption of $1.9 billion debt.