By Kristin Jones
United Technologies Corp. (UTX) confirmed it has agreed to sell
units of its Hamilton Sundstrand subsidiary to private-equity
groups for $3.46 billion.
Washington private-equity group Carlyle Group LP (CG) and
European buyout shop BC Partners have teamed up to buy the Milton
Roy Co., Sullair Corp., and Sundyne Corp. businesses, which make
pumps and air compressors.
The deal, which is subject to regulatory approval, is expected
to close by year-end.
"While these are strong, profitable companies with solid
customers and continued promising outlooks, they are not part of
UTC's core of aerospace and building systems," said United
Technologies Chief Executive Louis Chenevert.
Earlier Wednesday, The Wall Street Journal reported the company
was nearing a deal, citing people familiar with the matter.
The industrial conglomerate is selling the businesses to help
pay for its $16.5 billion acquisition of Goodrich Corp. (GR), which
was announced last September.
United Technologies' first-quarter profit slumped as results
took a hit from the planned shedding of certain businesses to
finance the planned Goodrich acquisition.
Shares rose 1.9% after hours to $74. Through the close, the
stock was down 9% in the past three months.
Write to Kristin Jones at kristin.jones@dowjones.com
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