Textron Inc (NYSE:TXT) is reportedly resuming negotiations to sell its fuel systems division.
Textron has revived efforts it ended four years ago to sell a business that makes fuel tanks for cars and is worth over $1 billion, reported Reuters, citing people familiar with the matter.
The fuel systems industry faces challenges as the automotive industry shifts from combustion to electric engines. Textron has been concentrating on its aircraft division, added the report.
According to the sources, Textron hired JPMorgan Chase & Co (NYSE:JPM) to handle the sale of the Kautex unit.
Kautex is part of Textron’s industrial division and contributed around $1.8 billion to the company’s overall revenue of $12.8 billion in FY22. It has more than 30 sites in 13 countries where it manufactures gasoline tanks and other components utilized in producing car elements.
Price Action: TXT shares traded lower by 0.99% at $64.80 on the last check Friday.
