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.
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(END) Dow Jones Newswires
July 25, 2012 19:23 ET (23:23 GMT)
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