DALLAS (AP) - Major U.S. airlines have agreed to sell a military and aviation communications company to a unit of The Carlyle Group.
AMR Corp., the parent of American Airlines, said in a regulatory filing Thursday that the sale of ARINC Inc. was agreed upon Tuesday. AMR said it expects to get $194 million in proceeds and record a gain of $140 million when the sale closes Oct. 31.
UAL Corp., the parent of United Air Lines, said in a filing that it expects to get more than $125 million and gain more than $40 million for its share.
The airlines didn't disclose the total price Carlyle will pay for ARINC. Major airlines hold more than 90 percent of ARINC stock, AMR and UAL said.
The airlines announced in April that they planned to sell ARINC, a 77-year-old military and aviation communications company based in Annapolis, Md.
ARINC had $890 million in revenue in 2005, two-thirds of it from the U.S. military. The company makes wireless communications systems for the military and for air-to-ground communications in the commercial aviation industry.
ARINC's other stakeholders include The Boeing Co., Ford Motor Co. and USX Corp., according to the company's 2005 annual report.
