Gas Turbine Efficiency Sells Aviation Unit

December 30, 2010

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Britain's Gas Turbine Efficiency said it agreed to sell the assets of its aviation engine wash services business to US aircraft engine maker Pratt & Whitney for USD$17.1 million.

Gas Turbine said the asset sale to Pratt & Whitney would help it focus on gas turbines in the power generation and oil and gas sectors.

The company, which had been looking for a suitor for its aviation unit since the first half of the year, saw a potential investor pull out of a plan to buy a significant stake in the company in October.

Gas Turbine, whose core product is cleaning services for gas turbines, said it was continuing to explore strategic options for the company.

The company expects net sales of about USD$5.7 million from the aviation engine wash services business for fiscal 2010.

Gas Turbine also said the company's sales for January-September were USD$25 million, with a net loss of USD$3.2 million. It expects full-year sales of about USD$40 million, boosted by its energy-services segment.

(Reuters)