United Technologies is a step closer to paying for its takeover of the Goodrich Corporation.
Two private equity firms, the Carlyle Group and BC Partners, have agreed to buy Hamilton Sundstrand Industrial, a maker of industrial pumps and compressors, from United Technologies for $3.46 billion, the companies announced on Wednesday.
Proceeds from the transaction, which is expected to close in the fourth quarter of this year, will go toward financing United Technologies' $16.5 billion acquisition of Goodrich, which was announced in 2011. Carlyle and BC Partners are both investing in the deal, with debt financing from a group of banks.
The agreement is the latest move by United Technologies to shed noncore assets. On Monday, the company said it agreed to sell its Rocketdyne unit to GenCorp for $550 million. In March, United Technologies said it planned to sell about $3 billion worth of assets to help pay for the Goodrich deal.
Hamilton Sundstrand Industr ial comprises three businesses, which make components used in industries like energy and mining. United Technologies, which is based in Hartford, Conn., makes elevators and aircraft engines.
“We believe Hamilton Sundstrand Industrial's strong product mix combined with secular growth trends in the energy, chemicals and industrials sectors create attractive long-term growth prospects for the company,†Vipul Amin, a principal of the Carlyle Group, said in a statement.
The buyers were advised by Citigroup and RBC Capital Markets, and the law firm Latham & Watkins. A host of banks - Citigroup, Credit Suisse, Deutsche Bank, Morgan Stanley, RBC Capital Markets and UBS - have committed financing.
