High Technology -- Sundstrand To Sell Redmond Subsidiary

Sundstrand Corp. said today it has reached a preliminary agreement to sell its Redmond-based Sundstrand Data Control division for $225 million to Rockwell International Corp.'s Collins Commercial Avionics.

Sundstrand Data Control is one of the Eastside's largest employers, with about 1,300 workers.

"It's too early to say what will happen to the Redmond base," said Gary Hedges, Sundstrand vice president in Rockford, Ill. "We haven't even discussed such details."

"The businesses are complimentary with a minimum overlap in production, so it's likely the Redmond operation will be continued there," said Tom Hobson, spokesman for Collins, which is based in Cedar Rapids, Iowa. Rockwell hopes to complete the purchase by April 1. The sale is subject to regulatory review and board approval.

Sundstrand makes "black boxes," the cockpit and data-control recorders for commercial aircraft, and other aircraft equipment and systems such as ground-proximity and wind-shear warning computers, flight management systems, accelerometers and thermal switches.

Sundstrand also has operations at Moses Lake and in Prescott, Ariz. Last year, it had sales of $216 million.

Collins produces communications, navigation, flight-control and position-location products for transportation companies. It employs more than 6,100 people worldwide. Rockwell is a major supplier of cockpit systems.

"We are excited about the enhanced potential for Sundstrand Data Control growth with the prospective new owners," said Robert Smuland, executive vice president and chief operating officer of Sundstrand Aerospace.

"Our decision to sell Data Control is based on our belief that it will be better positioned to serve future integrated-cockpit and flight-safety markets by teaming with a company whose core business is avionics," said Harry Stonecipher, chairman, president and chief executive officer of Sundstrand.

He said the Data Control unit is an "excellent business with proprietary products and strong market presence."

Sale of the Sundstrand unit has been rumored for months. Allied Signal recently had been mentioned as a strong contender to buy it.

Sundstrand Data Control has been in a deep slump for the past two years, hurt by the downturn in the airline and defense businesses.

The company has gone through a long series of layoffs and job reductions, cutting employment by about 25 percent from about 1,750 two years ago as it struggled to get back on its feet.

-- Times East bureau reporter Scott Williams contributed to this report.