UTC Sells Subsidiary to Carlyle Group
Dec 13th 2012 6:16PM
Updated Dec 14th 2012 9:22AM
On Thursday, United Technologies confirmed that it has completed the sale of its Milton Roy Co., Sullair Corp., and Sundyne Corp., industrial products businesses, to private equity firms The Carlyle Group and BC Partners, for a total sales price of $3.46 billion. UTX said in a statement that it will use the monies generated by the sales to repay "a portion of the debt" incurred as part of UTC's purchase of Goodrich Corporation earlier this year.
All three of the units now sold were previously part of UTC's Hamilton Sundstrand industrial products business. UTC characterized their divestitures as "another step forward in UTC's ongoing portfolio transformation to focus on its core of aerospace and building systems" -- a transformation that has included the Goodrich acquisition and, also, the recent sale of UTC's Pratt & Whitney Power Systems unit to Mitsubishi Heavy Industries.
Shares of UTC are down 0.7% on the news, at $80.44. Shares of Carlyle Group are up 0.6% at $24.71.
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