Boeing to Sell Long Beach Subsidiary

Boeing Co., the world’s biggest aircraft builder, which earlier this week disclosed a top-to-bottom review to weed out products and programs that aren’t profitable, said Thursday it plans to sell a Long Beach-based technical services unit to a management buyout team backed by BankAmerica Corp.

Terms weren’t disclosed. The 150-employee unit, known as McDonnell Douglas Technical Services, provides skilled contract engineers and technicians to U.S. companies, including Boeing. It was inherited in Boeing’s 1997 acquisition of McDonnell Douglas Corp.

The unit represents about 2,300 contract workers, Boeing spokeswoman Barbara Anderson said.

The unit is “just not a fit with our businesses,” Anderson said.

The sale is a small step in Seattle-based Boeing’s plan to trim its sprawling holdings. It’s already sold its commercial helicopter unit. Boeing said Wednesday it plans to sell more businesses valued at $1.3 billion unless it can turn them around.

Boeing shares fell 63 cents to close at $35 on the New York Stock Exchange.

Anderson said final terms were still being negotiated, but the sale is expected to close by the end of March.

The unit’s management team is led by subsidiary President Ellen Roy, Mark Masterson and Dennis Bashuk. It is buying the unit with CIVC Partners, a $500-million private equity fund whose sole limited partner is Bank of America.

“We expect a smooth transfer of ownership,” Roy said. “Our . . . customers will not experience any disruption in service.”

The unit will continue to provide contract labor services to Boeing under a five-year agreement.