United Technologies Corp., parent of Cedar Rapids-based Collins Aerospace, said it has halted the sale of its fire-safety and security business because of recent market volatility.
The company plans to instead focus on its portfolio separation plans, according to a statement Thursday in response to queries from Bloomberg News.
The sale plans stalled after bids from prospective buyers including private equity firms Apax Partners, PAI Partners and Eurazeo came in below the industrial behemoth’s expectations, people familiar with the matter said, asking not to be identified because the process is private.
UTC was seeking about $3 billion for the asset, a person familiar with the matter said previously.
Representatives for PAI, Eurazeo and Apax declined to comment.
UTC is planning to split off its disparate businesses, which span from jet engines to elevators, following its $23 billion deal for Rockwell Collins to create an aerospace behemoth.
CEO Greg Hayes announced the plan in November after months of pressure from activist shareholders, Third Point’s Dan Loeb and Pershing Square Capital Management’s Bill Ackman.
UTC agreed to sell an ice-cream machine unit, Taylor Co., for $1 billion last year.
The fire safety business makes sprinklers, smoke detectors and security cameras, and provides services such as training and maintenance, according to its website. Its brands include Chubb, Fireye and Kidde, among others.