On Friday, United Technologies announced that it has agreed to break off part of its recent Goodrich acquisition and sell it to Triumph Group .
One condition of receiving regulatory approval for purchasing Goodrich last year was that UTC divest Goodrich's pump and engine control systems business. Accordingly, UTC has agreed to sell this business to Triumph in a deal expected to close sometime this quarter. The unit will be renamed Triumph Engine Control Systems LLC (TECS) after acquisition.
Financial terms of the sale were not disclosed, but Triumph did say in a press release that it expects TECS to add $195 million in annual revenue to its business, and to be immediately accretive to earnings. The business being acquired employs approximately 530 employees at its West Hartford, Conn., facility. It supplies commercial, military, helicopter, and business jet markets.
Shares of Triumph are up 3.9% as of this writing, at $69.99, while shares of UTC are up 0.2% at $86.56.
The article Triumph Group to Buy Goodrich Pump and Engine Business originally appeared on Fool.com.Fool contributor Rich Smith has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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