United Technologies has hired Citigroup to sell some Goodrich assets as a condition of winning regulatory approval for its USD$16.5 billion takeover of Goodrich, according to three people familiar with the matter.
United Tech closed its largest-ever acquisition last month on condition that it sells some of Goodrich's power generation and small-engine control units that generate about USD$250 million in annual revenue.
Those assets combined are expected to fetch more than USD$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 and BC Partners for USD$3.46 billion, and struck a USD$550 million deal to sell its Rocketdyne space unit to GenCorp.
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 Boeing and Airbus.