Raytheon considers $1 billion sale of repair unit

Raytheon Technologies Corp., one of the world's largest aerospace and defense companies, is considering a $1 billion sale of one of its services units, according to people familiar with the matter.

The company - parent of Collins Aerospace, Cedar Rapids' largest employer - is working with an adviser to look at strategic options for the unit, including a sale, said the people, who asked not to be identified because they weren't authorized to speak publicly.

The unit, which provides training for the repair and maintenance of equipment, vehicles and machinery, is likely to interest private equity firms, the people said.

A final decision on pursuing a sale hasn't been made and Raytheon could elect to keep the business, the people said.

A spokesperson for Raytheon, based in Waltham, Mass., declined to comment. The number of employees who might be affected and locations of the unit's workforce were not disclosed.

Raytheon has been making divestitures following its all stock merger with United Technologies Corp. in April of this past year that created a business valued at about $130 billion last April.

United Kingdom-based BAE Systems agreed to buy the company's military global positioning system business for $1.925 billion and its airborne tactical radios business for $275 million. BAE's 700 employees will continue to work in Cedar Rapids in to-be-constructed facility.

Raytheon, which began as a refrigeration company in 1922, is now centered on four divisions - Collins Aerospace; engine maker Pratt and Whitney; sensors; and defense, according to its website.