Raytheon Co. sold most of its appliance business for $750 million Monday, unloading its Amana kitchen appliance line as part of an increased focus on defense electronics.
The deal with closely held Goodman Holding Co. of Houston continues a transition that started with Raytheon’s purchase of defense businesses from Texas Instruments and Hughes Electronics Corp.
When the deals are finalized later this year, once-diversified Raytheon will have remade itself into a $21 billion company committed squarely to the defense aerospace business.
“Analysts have criticized them for a lack of focus. Well, they certainly have focus now,” said Jon Kutler of Quarterdeck Investment Partners in Los Angeles. “For the next few years, they’re extremely well positioned.”
Goodman has agreed to pay $550 million for the home appliance, air conditioning and commercial cooking segments of Raytheon Appliance Group.