--TransDigm's agreement to buy a Goodrich unit from United
Technologies has been terminated
--The $236 million deal required, but didn't get, approval from
the Justice Department
--Separately, United Technologies launched a tender offer for up
to $490 million in Goodrich notes
(Updates with information about the debt tender offer.)
By Kristin Jones
Aviation-parts supplier TransDigm Group Inc. (TDG) said an
agreement to buy the Goodrich pump and engine control systems
business from United Technologies Corp. (UTX) has been terminated
after the U.S. Justice Department objected to the deal.
The companies unveiled the proposed $236 million cash deal in
October, and it was expected to close late in the year or early in
2013.
An agreement between United Technologies and the Department of
Justice had made the transaction contingent on the agency's
approval.
Industrial conglomerate United Technologies bought
aircraft-component maker Goodrich in late July for $16.5 billion,
seeking to increase its exposure to commercial aviation amid a
recovery in that sector. Regulatory authorities required United
Technologies to sell the pump and engine control systems unit as a
condition of the acquisition.
The Goodrich pump and control systems unit makes aerospace fuel
systems for customers in the business-jet, helicopter, military and
commercial markets.
TransDigm, which makes ignition systems, cockpit-security
devices and other aircraft components, has benefited from a string
of acquisitions. It said in October that the deal was expected to
help it "expand our content on a number of substantial engine
applications."
TransDigm Chief Executive W. Nicholas Howley said Thursday that
the agreement between the Justice Department and United
Technologies is unusual, and is not expected to affect future
acquisitions.
Separately, United Technologies launched a tender offer for up
to $490 million of six series of outstanding notes issued by
Goodrich, as it seeks to pay down the acquired company's long-term
debt.
The notes, which mature between 2018 and 2038, have an
outstanding principal amount of around $1.09 billion.
The offers expires at midnight EST at the end of Jan. 7, unless
terminated or extended. Those who tender before 5 p.m. on Dec. 19
will receive an additional $30 per $1000 principal amount.
United Technologies shares closed Thursday at $80.87 and were
unchanged after hours. The stock is up 11% so far this year.
TransDigm shares were down 44 cents after hours to $134.39.
Through the close, the stock had risen 41% since the start of the
year.
Write to Kristin Jones at kristin.jones@dowjones.com
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