Avco Owner to Sell Part of Subsidiary : Finance: Textron plans to offer up to 19% of Paul Revere Corp. to raise funds for financial services units.

IRVINE —  The owner of Avco Financial Services Inc. said Monday that it will sell up to 19% of one of its insurance subsidiaries but has no plans to sell all or part of its Avco group of finance and insurance companies.

Textron Inc., a Providence, R.I., conglomerate, said it has filed documents with the Securities and Exchange Commission to seek approval for the public sale of 17% to 19% of its Paul Revere Corp.

At the same time, the parent company sought to dispel rumors that it was pulling out of the financial services industry and might sell Irvine-based Avco.

James F. Hardymon, Textron’s chairman, said in prepared remarks that the Fortune 500 company has “no present plans to sell all or a portion of any other financial services division.”

News reports last week suggested that Textron would reduce its reliance on financial services and acquire more manufacturing companies. Of the company’s $8.35 billion in revenue last year, 44% came from aerospace technology, 33% from financial services and 23% from manufacturing companies like Jacobsen lawn mowers and Homelite chain saws.

Revere, a Worcester, Mass., carrier that specializes in providing disability income insurance to professionals, was once an Avco subsidiary but was transferred to Textron in 1987.

The sale of a minority interest in Revere would fulfill Hardymon’s desire to raise money for his financial services units without tying up more corporate funds. Financial firms typically need more operating cash than manufacturing companies.

Avco, with 1,000 employees in Orange County and 6,000 throughout the nation and in four other countries, was a major contributor to Textron’s record-breaking financial results last year. It provided 16% of Textron’s revenue and 32% of its net income.