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Pratt & Whitney, a unit of United Technologies Corporation (UTX - Free Report) , recently entered into a definitive agreement with Hanwha Techwin Co. to acquire 30% equity interest in P&W NGPF Manufacturing Company Singapore Pte. Ltd. (PWMS).

Founded in 1952, Hanwha is a leading business conglomerate in South Korea. The company has a diversified portfolio ranging from explosives, retail, solar panels and financial services. The company provides its services for solar panels to 79 distributors and wholesalers in over 23 different countries.

Per the joint venture, Pratt & Whitney will offer its complete assistance in the sourcing of critical parts while providing capital investment requirements with Hanwha. In addition, Hanwha has also acquired a call option from Pratt & Whitney to purchase more equity by 2023. The Singapore division specializes in the manufacture of hybrid metallic fan blade parts and high-pressure turbine disks for the company’s PurePower Geared Turbofan (GTF) engine family.

This collaboration will help enhance PWMS’s facility by delivering highly advanced GTF fan blades and high-pressure turbine disks at a rapid rate to Pratt & Whitney's sites to keep up with the company’s growing demand.

Alongside, in a separate press release the company announced that the V2500 engine designed and manufactured by International Aero Engines (IAE), a global partnership of aerospace leaders including Pratt & Whitney, was selected by BOC Aviation to power its five Airbus A320ceo family aircraft.

Leading global aircraft operating leasing company BOC Aviation has a fleet of 483 aircraft.  It provides its services to 64 airlines globally across 31 countries as of Jun 30, 2016.

IAE has a history of providing V2500 engines services, which has powered over 170 aircraft belonging to BOC Aviation. This deal will power a significant portion of the company’s A320 family fleet of aircrafts.

The joint venture and contract win will likely prove to be accretive for the company and augment the top line going forward.

United Technologies, the parent company of Pratt & Whitney, currently carries a Zacks Rank #4 (Sell). Some better-ranked stocks in the same space include Barloworld Ltd. (BRRAY - Free Report) , Raven Industries Inc. (RAVN - Free Report) and Sumitomo Corporation (SSUMY - Free Report) , each carrying a Zacks Rank #2 (Buy).You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Sumitomo has a long-term EPS growth expectation of 5%, while it is trading at a forward PE of 11.5x. Its share price has gained 8% year to date.

Barloworld has a long-term EPS growth expectation of 7%, and is trading at a forward PE of 10.2x. Its share price has gained 9.1% year to date.

Raven delivered a positive average surprise of 63.24% over the last four quarters, and has long-term EPS growth expectation of 10%. Its share price has gained 47.8% year to date.

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