(AP) — Diversified manufacturer Textron Inc. said Thursday it has agreed to sell its Troy, Mich.-based fastening systems business to private equity firm Platinum Equity for $630 million in cash, plus the assumption of certain liabilities.
Textron, which makes Cessna business jets and Bell helicopters, said it expects to realize cash proceeds of $670 million after taxes and transaction costs. The deal is expected to close in the third quarter, pending regulatory reviews.
The sale marks Textron's complete exit from the fastening business. The company had announced in September 2005 that it would evaluate strategic options for the unit, then said in December that it would put the unit up for sale.
Textron has been trimming non-core manufacturing businesses from its portfolio. So far, the divested businesses represent more than $4.4 billion in revenue and $1.4 billion in finance receivables from the company's Textron Financial unit.
The company expects to record a related after-tax impairment charge of $120 million under discontinued operations for the second quarter.