GKN has sold a controlling 4% stake in its subsidiary Normalair-Garrett (NGL), the maker of environmental control systems for the aerospace industry, to America’s AlliedSignal for £12m.
GKN expects to sell its remaining 48% of Yeovil, Somerset-based NGL to AlliedSignal for a further £66m by the end of 1999, if the US firm exercises its option to buy.
NGL employs 1,600 people at five sites, including the Yeovil headquarters, a repair and overhaul facility in Bournemouth, a foundry in Chard, plus two Australian plants. GKN said it does not expect any change in the number of employees at NGL in the short term.
GKN has also sold New York-based repair and overhaul company Hermetic Aircraft International to AlliedSignal for $13m (£8m).