By Maria Armental

Israel's TAT Technologies Ltd. and Honeywell International Inc. struck a 10-year, exclusive agreement over an engine installed in Boeing 777 aircrafts.

TAT Technologies stock, which closed Tuesday at $5.10, rose more than 50% to $7.67 in after-hours trading.

Under the terms of the contract, TAT Piedmont Aviation will offer rental services to airlines who operate the Boeing 777 aircrafts and will serve on behalf of Honeywell for any rental of Honeywell GTCP331-500 APUs to Honeywell's customers on an exclusive basis.

As part of the agreement, TAT-Piedmont acquired Honeywell's GTCP331-500 APU rental bank for about $6.5 million, the company said.

In addition, TAT-Piedmont and Honeywell entered into a binding agreement in which Honeywell committed to authorize TAT-Piedmont to provide maintenance, repair and overhaul service to GTCP331-500 APU, and provide TAT-Piedmont relevant knowhow and parts, making it an authorized MRO services provider world-wide for the engine.

It had previously signed a 10-year agreement with Honeywell for the transfer of Honeywell's APU GTCP331-200/250 MRO contracts.

Write to Maria Armental at maria.armental@wsj.com

(END) Dow Jones Newswires

01-05-21 1804ET