LEAR-SIEGLER HOLDING TO DIVEST AEROSPACE UNIT

  Forstmann Little and Co said Lear
  Siegler Holding Corp plans to divest its aerospace group
  subsidiary, comprised of the Defense Electronics Group and the
  Components Group.
      Divestitures had been expected since Lear-Siegler, a
  diversified conglomerate, was acquired last December in a 2.1-
  billion-dlr-leveraged buyout by the Wall Street firm of
  Forstmann Little.
      Lear's aerospace group revenues for fiscal 1987 are
  expected to be about 700 mln dlrs, said Forstmann.
      The Defense Electronics Group designs and manufactures
  weapons, management systems, flight control systems, remotely
  piloted vehicles and reference and navigation systems, mainly
  for military markets.
      The Defense Group subsidiaries are Astronics Corp, which is
  based in Santa Monica, Calif., and employs 1,076 people;
  Instrument and Avionic Systems Corp, based in Grand Rapids,
  Mich., and employs 3,479 people; International Corp, based in
  Stamford, Conn., and employs 266 people; and Development
  Sciences Corp, based in Ontario, Calif., and employs 237
  people.
      The Components Group manufactures pumps, bearings, and
  other industrial components as well as nuclear control drive
  rod mechanisms and valves.
      The Group's subsidiaries include Power Equipment Corp,
  based in Cleveland, which employs 880 people; Energy Products
  Corp, based in Santa Ana, Calif., which employs 755 people; 
  Romek Corp, based in Elyria, Ohio, which employs 262 people;
  and Transport Dynamics in Santa Ana, which employs 254 people.
      Overall, Lear's Aerospace Group's eight subsidiaries
  employs 7,200 people.
      Lear Siegler said it plans to retain Management Services
  Corp, engaged in aircraft maintenance modification for various
  Department of Defense agencies.
      Morgan Stanley and Co will act as financial advsiors for
  the group's divestitures.
      Last month, Lear Siegler said it planned to sell its Smith
  and Wesson handgun business, Starcraft Recreational Products
  Ltd, the Peerless truck trailer operations, and other units, as
  part of its restructuring plans.
      Lear apparently will retain its Piper Aircraft unit.
  

