United Tech (UTX) Nears $3.5B Deal for Sundstrand Units; Will Continue Divestitures
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New developments are happening in the proposed asset divestiture by United Technologies (NYSE: UTX) for its pump and compressor businesses.
Earlier in July, reports had United Tech looking o sell the fluid-control products and air compressors businesses of its Hamilton Sundstrand subsidiary. Previous reports had a potential sales price at $3 billion to $4 billion, mostly due to strong demand.
Today, Reuters is reporting the units might go for $3.5 billion. Private equity firms leading the bidding process is a consortium of Carlyle Group and MC Partners Ltd. Still in the process is TPG Group.
Bids were required to be submitted before the end of June.
Hamilton Sundstrand is one of three possible units United Tech is looking to sell in order to help fund the $16.5 billion takeover of Goodrich (NYSE: GR).
Other public companies that might be interested in acquiring assets include names like SPX Corp. (NYSE: SPW), Dover (NYSE: DOV), Gardner Denver (NYSE: GDI), and Flowserve (NYSE: FLS), among others.
Monday morning, GenCorp. (NYSE: GY) entered into an agreement with United Tech to acquire United Tech's Pratt & Whitney Rocketdyne (PWR) unit. The deal was valued at $550 million, according to the release. GenCorp may have gotten an amazing deal, with shares closing 12.3 percent better on the session.
United Tech shares are flat in early trading Tuesday.
Earlier in July, reports had United Tech looking o sell the fluid-control products and air compressors businesses of its Hamilton Sundstrand subsidiary. Previous reports had a potential sales price at $3 billion to $4 billion, mostly due to strong demand.
Today, Reuters is reporting the units might go for $3.5 billion. Private equity firms leading the bidding process is a consortium of Carlyle Group and MC Partners Ltd. Still in the process is TPG Group.
Bids were required to be submitted before the end of June.
Hamilton Sundstrand is one of three possible units United Tech is looking to sell in order to help fund the $16.5 billion takeover of Goodrich (NYSE: GR).
Other public companies that might be interested in acquiring assets include names like SPX Corp. (NYSE: SPW), Dover (NYSE: DOV), Gardner Denver (NYSE: GDI), and Flowserve (NYSE: FLS), among others.
Monday morning, GenCorp. (NYSE: GY) entered into an agreement with United Tech to acquire United Tech's Pratt & Whitney Rocketdyne (PWR) unit. The deal was valued at $550 million, according to the release. GenCorp may have gotten an amazing deal, with shares closing 12.3 percent better on the session.
United Tech shares are flat in early trading Tuesday.
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