ITT Corp. (ITT) agreed to sell its systems-engineering and
technical-assistance unit to privately held Wyle Inc. for $235
million as the defense and industrial conglomerate continues to
realign its business.
The company last month unveiled plans to sell the unit, part of
its defense and information solutions segment, the company's
largest business unit. However, with cuts in U.S. defense spending
expected in the coming years as military operations in the Middle
East end, ITT has been aggressively bulking up its other business
units and trying to replace military contracts that are ending or
in jeopardy of being axed with defense and aerospace programs that
are likely to be spared.
Wyle is a provider of high-tech science, aerospace engineering
and information technology services to the federal government on
long-term outsourcing contracts. The company also provides testing
and evaluation services.
The deal is expected to close by year's end.
ITT shares closed Friday at $46.03 and were inactive premarket.
The stock is down 7.5% this year.
-By Tess Stynes, Dow Jones Newswires; 212-416-2481; Tess.Stynes@dowjones.com;