The Sperry Corporation plans to sell its Sperry Vickers unit to an investment group led by the unit's management and expects an agreement to be completed soon, the company said at its annual meeting in New York yesterday.
Sperry Vickers makes fluid power systems, pumps and valves for industrial machinery and heavy equipment.
Sperry has been discussing the division's possible sale since last December.
In the fiscal year ended March 31, Sperry Vickers contributed 9 percent, or $528 million, to Sperry's $5.57 billion in total revenue and 11 percent, or $37.3 million, to its total pretax income of $354.8 million. In the fiscal year 1982, Sperry Vickers's revenue was off 1 percent from the previous year and its pretax income was down 11 percent.
Sperry's chairman and chief executive officer, Gerald G. Probst, said Sperry officials and members of a management group led by Theodore N. Duncan, president of Sperry Vickers, were drafting an agreement under which Mr. Duncan's group would buy the division. No price was disclosed, but the management group essentially would take a substantial equity position in Sperry Vickers.
Sperry also has interests in computers, aviation systems and other machinery products. In the first quarter of its new fiscal year, Sperry said profit was $16.2 million, or 37 cents a share, down 67 percent from $48.4 million, or $1.16 a share, a year earlier. First-quarter revenue tumbled 7.4 percent, to $1.2 billion from $1.3 billion.
Sperry's common stock rose 37.5 cents a share, to $22.25, in New York Stock Exchange trading yesterday.