(Bloomberg) -- Signia Aerospace, backed by private equity firm Arcline Investment Management, has agreed to buy a Collins Aerospace unit from RTX Corp.
The Goodrich Hoist & Winch business, which is part of RTX’s Collins division, manufactures and maintains, among other things, hoists used by rescue helicopters and winches for military aircraft.
Bloomberg News reported earlier Tuesday that RTX was in advanced talks to sell the hoist business to Arcline in a deal that would value it at about $500 million. Signia didn’t disclose terms of the transaction in its statement announcing the agreement.
Signia provides thermal systems and mission equipment such as hoists that are used in 511 aircraft types made by Boeing, Airbus, Embraer and Sikorsky, among others, according to its website.
“Goodrich Hoist & Winch is a leader in helicopter rescue equipment and will be an excellent addition to our Signia Mission Systems business segment,” Signia Chief Executive Officer Norman Jordan said in the statement. “Combined, the complementary products designed and manufactured by our companies play a significant role in multiple critical airborne missions, including rescue and disaster relief operations across the globe.”
Arcline, with offices in San Francisco, New York and Nashville, Tennessee, has $8.9 billion in cumulative capital commitments and is focused on technology-driven businesses in defense and aerospace, among other industries, according to its website.
Arlington, Virginia-based RTX, which changed its name from Raytheon Technologies Corp. a year ago, is also selling an actuation and flight-control business that is part of Collins Aerospace to Safran SA. That deal cleared a key hurdle in June after addressing objections from the Italian government over its security concerns.
RTX shares rose 1% Tuesday and are now up 20% this year, giving the company a market value of more than $134 billion.
--With assistance from Ryan Beene.
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