Goodrich to Spin Off Engineered Products
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Goodrich Corp., the largest U.S. maker of aircraft landing gear, said it plans to spin off a division that makes seals, compressors and bearings, separating itself from the unit’s asbestos liability.
The spinoff will complete the former tire maker’s transition to an aerospace company, Goodrich said. The new company will make engines for naval ships, trains and electric power plants.
Shareholders will get one share of the new company for every five Goodrich shares they own. The new company, whose businesses were acquired as part of the 1999 Coltec Industries purchase, will be based in Charlotte, N.C., and will have about 5,000 employees and $800 million in annual sales.
Goodrich has paid $47.4 million in asbestos claims this year, according to a recent regulatory filing. Although new asbestos claims continue to come in, the liability won’t hurt the long-term viability of the new company, said Kevin Ramundo, a Goodrich spokesman.
Charlotte, N.C.-based Goodrich rose 95 cents to close at $33 on the New York Stock Exchange.
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