According to the Washington Business Journal, UTC will divest assets from its aircraft engine manufacturing business as part of an agreement with the government for the $18.4 billion transaction.
The Hartford, Conn.-based company will also sell Goodrich’s stake in joint ventureIn the SBASmall Business Administration / Small Business Act Mentor-A business, usually large, or other organization that has created a specialized program to advance strategic relationships with small businesses.Protege program, and agreement between a certified 8(a) firm and a mentor A business, usually large, or other organization that has created a specialized program to advance strategic relationships with small businesses.firm to perform a specific federal contract. Aero Engine Controls, a maker of engine control systems for large aircraft turbine engines, Jill Aitoro reports.
This acquisition, along with UTC’s previous buy of a majority stake in International Aero Engines, continues the company’s strategy to grow in commercial aerospace, said UTC Chairman and CEO Louis Chenevert.
Marshall Larsen, formerly Goodrich’s chairman and CEO, will officially join UTC’s board of directors at UTC’s Sept. 12, 2012 board meeting, UTC said.
UTC will combine Goodrich with its Hamilton Sundstrand subsidiary to form a new aerospace systems unit with Alain Bellemere named president and CEO of the unit.
Presidents of the Pratt & Whitney subsidiary and the aerospace systems unit’s two businesses — aircraft systems and power, controls and propulsion systems — will report to Bellemere.