United Technologies Corp. announced Dec. 12 it has reached agreement to sell its Pratt & Whitney Power Systems unit, currently part of Pratt & Whitney, to Mitsubishi Heavy Industries.
Terms of the agreement were not disclosed and the transaction is expected to close in the second quarter of 2013.
Divesting Power Systems allows UTC to focus on its core aerospace and commercial businesses. The transaction is subject to customary closing conditions, including regulatory approvals.
“We are pleased to announce Mitsubishi Heavy Industries’ agreement to purchase Pratt & Whitney Power Systems. It is a significant step in UTC’s ongoing portfolio transformation,” said Pratt & Whitney President David Hess. “Pratt & Whitney Power Systems is a solid company with many talented employees, and we are pleased to place it with a company that will provide it with the resources and capabilities for future growth. We will remain focused on our customers, providing them with superior products and services, and I know that MHI will do the same.”