United Technologies Corp (UTC) is on the verge of securing a buyer for the Rocketdyne rocket systems developer it plans to sell, according to CFO Greg Hayes.
Speaking during a Q1 results conference call on 24 April, Hayes said the company was in final…
United Technologies Corp (UTC) is on the verge of securing a buyer for the Rocketdyne rocket systems developer it plans to sell, according to CFO Greg Hayes.
Speaking during a Q1 results conference call on 24 April, Hayes said the company was in final negotiations with undisclosed suitors for Rocketdyne, which is owned by UTC’s Pratt & Whitney manufacturing subsidiary.
“We expect to sign a contract shortly for Rocketdyne,” he said.
Rocketdyne is one of a handful of assets that the US-based conglomerate has identified for divestment, in the wake of its US$16.5bn acquisition of aerospace manufacturer Goodrich Corp. Other assets being put on the block include renewable energy firm Clipper Windpower, and three subsidiaries of manufacturer Hamilton Sundstrand: Milton Roy, Sullair and Sundyne.
Hayes told investors that “initial bids show very strong interest for the industrial businesses”.
According to UTC, it could raise US$3bn from net divestitures, and a further US$1.5bn from mandatory convertible instruments to support the Goodrich deal.
However, since the plan to acquire Goodrich was announced late last year, the transaction has entered a European Commission Phase 2 investigation. Despite this, Hayes insisted that the acquisition was still set to close in mid-2012.
“We’re on track to close the deal,” he said.
UTC was unable to comment on the bids it has received for Rocketdyne. Reports have previously highlighted aerospace and defence firms Gencorp and Alliant Techsystems as potential suitors.
Rocketdyne was bought by Pratt & Whitney from Boeing back in early 2005 for around US$700m. Its engines have been used by Lockheed Martin, Boeing, and were part of the now retired NASA space shuttle.
