ITT to Sell Electrical Unit to French Firm

Industrial manufacturer ITT Industries Inc. said it plans to sell its electrical systems unit to French car-parts maker Valeo for $1.7 billion in cash. ITT Industries said the unit sold $1.9-billion worth of automotive windshield-wiper systems, fractional-horsepower electrical motors, air management systems, switches and sensors last year. It has 12 factories, primarily in Europe and the United States, and about 13,300 employees. The deal would double the share of Valeo’s business in the North American market, where it has been eager to expand. The company said it will reap $1.3 billion after taxes from the sale of the electrical systems business to Valeo, an independent company. White Plains, N.Y.-based ITT Industries shares rose on the news, gaining $1.13 to $35.19 on the New York Stock Exchange.