Raytheon to Sell One Business, Buy Another

Raytheon Co. agreed to sell its commercial aviation training division and buy AlliedSignal Inc.’s communications systems unit as Raytheon concentrates on its aircraft and defense electronics businesses. The third-largest U.S. aerospace and defense company agreed to sell the Britain-based training business to General Electric Co.’s GE Capital division for $68.5 million. Raytheon would pay $62.5 million for the 700-employee AlliedSignal unit, which has estimated 1998 revenue of $122 million. Raytheon has been shedding units since its $9.5-billion acquisition last year of General Motors Corp.’s Hughes defense business while buying others that complement its main businesses. The latest transactions are expected to be completed by the end of the third quarter. Lexington, Mass.-based Raytheon’s Class A shares fell $1.50 to close at $57.25 on the New York Stock Exchange. GE’s shares fell $2.56 to close at $92.94.