Raytheon collects initial bids in actuation divest process
Raytheon Technologies [NYSE:RTX] recently collected initial bids in the sale of its actuation business, three sources familiar with the matter told Mergermarket.
The actuation business, which makes flight controls, is being marketed at around USD 150m in EBITDA, the three sources said. France-based aerospace company SAFRAN [EPA:SAF] is among the parties showing interest in Raytheon's actuation business, two of the sources said.
There is also interest from private equity firms, two of the sources said. It was not known if Veritas Capital, which was named in the previous report as a potential acquirer, remains interested in the actuation business.
This news service reported last June that the Arlington, Virginia-based aerospace and defense company was expected to look at further divests from its Collins Aerospace business, with the actuation and landing gear businesses named as potential divest candidates. Bloomberg Law reported in January that Raytheon was considering a sale of its actuation business and was working with an undisclosed advisor.
Raytheon Technologies consists of four segments: Collins Aerospace Systems, Pratt & Whitney, Raytheon Intelligence & Space and Raytheon Missiles & Defense.
United Technologies and Raytheon completed their USD 74bn merger in 2020 to form Raytheon Technologies. United Technologies had acquired Rockwell Collins for USD 30bn in 2018. Once that deal was completed, Collins Aerospace was formed through the combination of UTC Aerospace Systems and Rockwell Collins.
Raytheon has a market capitalization of around USD 146bn.
Raytheon, Goldman Sachs, SAFRAN and Veritas Capital declined to comment.