United Technologies to sell wind, rocket engine businesses to finance $16.5B Goodrich deal
HARTFORD, Conn. — United Technologies Corp. said Thursday that it will sell its rocket engine and wind power businesses to help finance its $16.5 billion purchase of aerospace supplier Goodrich Corp.
The Hartford, Conn.-based industrial conglomerate, seeing a murky future in space travel and alternative energy, said it will sell Pratt & Whitney Rocketdyne, Clipper Windpower and its three industrial businesses at its Hamilton Sundstrand aerospace components manufacturer. It expects to raise $3 billion from the sales to finance its biggest acquisition ever….
He added that selling Clipper was not a difficult decision because the alternative energy business has stalled. “We’ve gone into this business with the thought that there was going be a renewable energy mandate in this country and there has not been one,” Hayes said.
That’s a reversal from comments to analysts last year that United Technologies’ $382 million purchase of Clipper Windpower in 2010 would help it capitalize on a global market it valued at $60 billion.
Alternative energy has stagnated with booming natural gas exploration. The nation’s supplies are bulging and natural gas is cheap. By comparison wind power is less economical than many thought it would be two years ago, he said.
Drexel Hamilton analyst Rick Whittington gave a mixed review to the sales. He said “good riddance” to Rocketdyne, which represents the “end of an era” in space travel. And he called Clipper a “misbegotten acquisition.”
read … Misbegotten Acquisition
United Technologies Seeks Sale of Clipper Windpower Turbine Unit
United Technologies bought the 51 percent of Clipper it didn’t already own for $222 million in October 2010, after reduced orders left the wind company struggling to finance operations.
Clipper abandoned plans in August to build the world’s largest turbine, the 10-megawatt offshore Brittania model to focus on land-based products.
United Technologies is classifying Clipper as a discontinued operation. The wind unit declined to comment.
read … Bye-Bye |