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Raytheon may shed Amana
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February 24, 1997: 9:59 a.m. ET
Proceeds from appliance unit would cut debt from planned acquisitions
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NEW YORK (CNNfn) - Raytheon Co. said it is exploring the sale its appliance operations in a move to trim debt before it moves ahead with more than $12 billion in planned defense-industry acquisitions.
The company's appliance subsidiary makes Speed Queen commercial washers and Amana stoves, ovens and refrigerators. It had $1.5 billion in revenue in 1996 and employs about 8,000 people in seven states and three countries.
The company has hired Credit Suisse First Boston as an advisor on the sale, which could bring in more than $1 billion. The cash could then be applied to the defense acquisitions, lowering Raytheon's debt.
Raytheon announced last month that it will buy the defense units of Texas Instruments Inc. and Hughes Electonics Corp., a General Motors Corp. subsidiary, for a total of $12.5 billion. After the purchase, Raytheon's total debt will triple to about $11 billion.
The unit is the fifth-largest appliance maker in the industry. Likely suitors include No. 4 Maytag Co., No. 3 Electrolux of Sweden. Less likely prospects include No. 2 General Electric Co. and No. 1 Whirlpool Corp. 
--Will Morton
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