Raytheon Technologies Corp., one of the world’s largest aerospace and defense companies, plans to sell a service unit for $ 1 billion, according to people familiar with the matter.
The company is working with an advisor to review the unit’s strategic options, including a sale, said the people, who asked not to be identified because they were not authorized to speak in public.
The unit, which provides training in repair and maintenance of equipment, vehicles and machinery, is likely to be of interest to private equity firms, residents said. A final decision on whether to continue a sale has not been made and Raytheon could choose to keep the business, the people said.
A spokesperson for Raytheon, based in Waltham, Massachusetts, declined to comment.
Raytheon made divestitures following its equity merger with United Technologies Corp. which created a company valued at around $ 130 billion last April. BAE Systems Plc has agreed to buy the company’s military global positioning system business for $ 1.9 billion and its tactical airborne radio business for $ 275 million.
Raytheon, which started as a refrigeration company in 1922, is now centered around four divisions: Collins Aerospace; engine manufacturer Pratt and Whitney; sensors; and defense.
Kiel Porter, Bloomberg