One condition of receiving regulatory approval for purchasing Goodrich last year was that UTC divest Goodrich's pump and engine control systems business. Accordingly, UTC has agreed to sell this business to Triumph in a deal expected to close sometime this quarter. The unit will be renamed Triumph Engine Control Systems LLC (TECS) after acquisition.
Financial terms of the sale were not disclosed, but Triumph did say in a press release that it expects TECS to add $195 million in annual revenue to its business, and to be immediately accretive to earnings. The business being acquired employs approximately 530 employees at its West Hartford, Conn., facility. It supplies commercial, military, helicopter, and business jet markets.
Shares of Triumph are up 3.9% as of this writing, at $69.99, while shares of UTC are up 0.2% at $86.56.