UTC to sell Pratt & Whitney's power systems unit to Mitsubishi Heavy Industries

United Technologies Corp (UTC), the $54-billion aerospace and defence contractor, yesterday agreed to sell the power systems business of its aircraft engine unit, Pratt & Whitney, to Japan's Mitsubishi Heavy Industries.

UTC did not disclose the deal price, but Reuters had reported in June that the Connecticut-based company was looking to sell the business for about $1 billion.

The power systems unit makes industrial gas turbines based on Pratt & Whitney's aircraft engine technology.

In addition, it is a leader in 'organic rankine cycle' technology, a power solution for renewable energy sources such as geothermal and biomass as well as waste heat recovery.

The business has facilities in East Hartford, Connecticut, and San Antonio, Texas and has more than 2,000 industrial gas turbines installed in over 50 countries worldwide.

After the sale, Pratt & Whitney will enter into long-term agreement with Mitsubishi to provide engineering and manufacturing services for the turbines.