Raytheon Will Buy Parts Of Chrysler

Raytheon Co. said Monday it would buy Chrysler Corp.’s defense electronics and aircraft modification units, reinforcing its commitment to defense business and an industry trend toward consolidation.

The deal also underscores Chrysler’s commitment to refocus on its core automotive business. The No. 3 automaker in the past few years has sold off several businesses not directly related to the building of cars and trucks.

Under the deal, Raytheon will pay $455 million in cash and a $20 million dividend to acquire Chrysler Technologies’ Electrospace Systems Inc. and Airborne Systems Inc. divisions.

Raytheon will merge the two units with E-Systems, a Texas-based defense electronics business it bought last year for $2.3 billion.