(Bloomberg) -- RTX Corp. is in advanced talks to sell a unit of its Collins Aerospace division to private equity firm Arcline Investment Management, according to people familiar with the matter.
Arcline-backed Signia Aerospace could announce an agreement to acquire the Collins Hoist and Winch business as soon as this week, the people said, asking not to be identified because the information is private. A deal may value the operations at $500 million or more, they said.
Negotiations could still fall apart and details of the potential transaction may change, the people said. Representatives for RTX and Arcline declined to comment.
RTX shares rose as much as 1.6% on Tuesday. The stock was up 1.1% at 12:23 p.m. in New York, giving the company a market value of about $135 billion.
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.
The unit of Collins that RTX is selling to Arcline manufactures and maintains, among other things, hoists used by rescue helicopters and winches for military aircraft including the Embraer C-390.
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.
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