Hartford conglomerate United Technologies Corp. is in final discussions to sell its Rocketdyne business to GenCorp Inc. a maker of aerospace propulsion systems, Reuters reports, citing two people familiar with the matter.
The deal, which may come late this week or early next week according to one of the sources, represents part of the diversified U.S. conglomerate’s efforts to divest non-core units and focus on closing its $16.5 billion acquisition of aircraft component maker Goodrich Corp.
The companies are still working out final details of the transaction and the talks could still fall apart, the people cautioned, asking not to be identified because the matter is not public.
UTC declined to comment, while GenCorp was not immediately available for comment.
Rocketdyne, the world’s largest manufacturer of liquid-fueled rocket propulsion systems, has been facing an uncertain outlook following the end of the U.S. space shuttle program last year, and industry executives have said consolidation is needed for the space industry to survive a tough environment.
The sale would come more than seven years after UTC bought Rocketdyne from Boeing Co for $700 million in cash.
