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Tecumseh Products to sell electrical unit

04.07.2007 09:36 Shopping - Source: toledoblade.com

TECUMSEH, Mich. —Financially troubled Tecumseh Products Co. has reached a deal to sell the majority of its electrical components business for $220 million in cash.

The buyer is Royal Beloit Corp., Beloit, Wis. Tecumseh will use the money to pay off debt.

Tecumseh is a leading manufacturer of compressors for commercial refrigerators and freezers as well as of lawn mower engines. The business it part of Tecumseh’s Fasco unit, purchased four years ago for $415 million. The units to be sold make motors for furnaces, air conditioners, and other uses. The deal, which is subject to regulatory approval, is expected to be completed in the third quarter.

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