(By Balachander) Derco Aerospace Inc. has signed a three-year agreement to exclusively distribute spares manufactured by Eaton Corp. (NYSE: ETN) to select international markets.
Financial terms of the agreement were not disclosed.
Derco is a Sikorsky Aerospace Services (SAS) company, which is the aftermarket business of Sikorsky Aircraft Corp., a subsidiary of United Technologies Corp. (NYSE: UTX). Derco provides aircraft spares distribution, logistics and technical services.
All Eaton product lines, including hydraulic system pumps, Teflon hose assemblies, quick-disconnect self-sealing couplings and power-management relays and illuminated switches, will be available from Derco.
[Related -United Technologies Corporation (NYSE:UTX): How Pension Shift Will Drive EPS?]
In addition, Derco and Eaton will continue to jointly offer repair and overhaul services for Eaton products.
"Extending Eaton's relationship with Derco through this venture will bring enhanced support to the international C-130 and F-16 communities," said Einar Johnson, Vice President of Sales for Eaton's Aerospace Group.
Eaton shares rose 0.55 percent to trade at $51.45 on Tuesday.