(By Balaseshan) United Technologies Corp. (NYSE: UTX), which provides technology products and services to the building systems and aerospace industries, has agreed to sell its former Goodrich Corp. pump and engine control systems business to Triumph Group Inc. (NYSE: TGI).
Triumph will purchase Goodrich Pump & Engine Control Systems (GPECS) from United Technologies for an undisclosed sum. The acquisition is expected to add about $195.0 million in annual revenue and to be immediately accretive to earnings, Triumph noted.
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Triumph said the acquired business will operate as Triumph Engine Control Systems, LLC and be included in the Aerospace Systems Group. The acquisition of GPECS will provide Triumph with proprietary capabilities in a market where it does not currently participate. The transaction is expected to close in the first quarter of 2013.
GPECS is an independent aerospace fuel system supplier for the commercial, military, helicopter and business jet markets. Located in West Hartford, Connecticut, it supplies electronic engine controls, fuel metering units, main fuel pumps for both the OE and aftermarket/spares end markets. The company has about 530 employees exclusively at its West Hartford facility.
"In addition, the acquisition will enhance our ties to existing customers while also further diversifying our customer base due to GPECS' strong alignment with all major engine OEMs and the U.S. Army," said Jeffry Frisby, President and Chief Executive Officer of Triumph.
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United Technologies said sale of the pump and engine control systems unit was one of the divestitures required by regulatory authorities as a condition of UTX's acquisition of Goodrich Corp.
On January 8, United Technologies reaffirmed its earnings expectations for the fiscal 2013 of $5.85 to $6.15 per share and sales outlook of $64 billion to $65 billion. The company reaffirmed its forecast for 2013 cash flow from operations less capital expenditures equal to or in excess of net income attributable to common shareowners.
UTX is trading up 0.16% at $86.54 on Friday, while TGI trades up 3.77% at $69.92.