United Technologies Sells Electric Power Systems Unit
As part of the regulatory conditions imposed during its acquisition of Goodrich, industrial conglomerate United Technologies completed the divestiture of the electric power systems of Goodrich by selling the business to French aerospace manufacturer Safran for $400 million. Earlier this month it sold Goodrich's pumps and engine controls business, also a stipulation imposed for regulatory approval.
United Technologies bought Goodrich last year for $18.4 billion, which it plans to pay for in part by selling its Pratt & Whitney Rocketdyne division to GenCorp for $550 million.
Among the plans UT had for completing the acquisition originally included spinning off Rocketdyne and its Hamilton Sundstrand units. Both of those were seen as having less opportunity for growth after President Obama reformed NASA's mission to one that saw far less space flight. Rocketdyne was a major supplier of NASA's rockets, while Hamilton Sundstrand supplied space suits.
The divestitures completed this month alleviated concerns the Justice Department had that by acquiring Goodrich, United Technologies would be the only significant supplier of large main-engine generators and aircraft turbine engines.
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