August 14, 2012 / 4:40 PM / 5 years ago

United Tech hires Citi for Goodrich divestiture - sources

2 Min Read

* United Tech selling Goodrich power, engine assets

* Initial bids this week, management meetings next-sources

* Rival aerospace companies showing initial interest-sources

By Soyoung Kim

NEW YORK, Aug 14 (Reuters) - United Technologies Corp has hired Citigroup Inc to sell some Goodrich assets as a condition of winning regulatory approval for its $16.5 billion takeover of Goodrich Corp, according to three people familiar with the matter.

The U.S. industrial conglomerate closed its largest-ever acquisition last month on condition that United Tech sell some of Goodrich's power generation and small-engine control units that generate about $250 million in annual revenue.

Those assets combined are expected to fetch more than $500 million and have attracted strong initial interest from rival aerospace companies in the United States and Europe, two of the people said.

United Tech is expected to receive initial bids for the Goodrich assets this week and plans to begin management presentations with potential buyers next week, they said.

United Tech did not have an immediate comment, while Citi declined to comment.

The divestiture follows a string of other deals United Tech has completed in recent months to help finance the Goodrich takeover.

In July, United Tech agreed to sell the industrial pump and compressor operations of its Hamilton Sundstrand arm to Carlyle Group LP and BC Partners for $3.46 billion, and struck a $550 million deal to sell its Rocketdyne space unit to GenCorp Inc.

The purchase of Goodrich, a maker of landing gear and other aircraft components, will build on United Tech's current Pratt & Whitney jet engine and Hamilton Sundstrand aircraft electronics arms, increasing the range of equipment it sells to top jet makers Boeing Co and Airbus.

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