Goodrich Shares Rise on Sale of Chemicals Unit

Shares of B.F. Goodrich Co. rose 8.7% after it agreed to sell its chemicals business to a private investor group led by AEA Investors Inc. The buyers of BF Goodrich Performance Materials include affiliates of DLJ Merchant Banking Partners and a unit of Germany’s Deutsche Bank. They agreed to pay $1.2 billion in cash and $200 million in debt securities issued by the new company and repayable over 10 1/2 years, Goodrich said. The sale, expected to close in its first quarter, will complete the former tire maker’s transition into an aerospace and industrial products supplier. It also sheds a business under pressure: Profits at chemical makers have fallen in the last year, mostly on rising costs for petroleum-based raw materials. Goodrich, the largest U.S. maker of aircraft landing gear, said it will use the proceeds to pay off debt, repurchase shares or to make acquisitions. Shares of the Charlotte, N.C.-based company rose $2.94 to close at $36.88 on the NYSE.