United Technologies [UTX] yesterday said it has agreed to sell its Power Systems business unit that is part of its Pratt & Whitney division to Japan’s Mitsubishi Heavy Industries so that it can focus on its core aerospace and commercial businesses.
Terms of the deal, which is expected to close during the second quarter of 2013, were not disclosed.
The sale “is a significant step in UTC’s ongoing portfolio transformation,” David Hess, president of Pratt & Whitney, said in a statement.
UTC is also in the process of raising money to pay off the debt associated with its acquisition earlier this year of Goodrich Corp.
Last week UTC terminated the planned sale of Goodrich’s pump and engine control systems business to TransDigm [TDG]. The divestiture of the business unit is required by regulatory authorities. The sale would have raised $236 million.