LOS ANGELES -- In a significant consolidation of the small airplane engine business, AlliedSignal Inc. said yesterday that it had agreed to buy the Lycoming Turbine Engine Division of Textron Inc. for $375 million in cash.

AlliedSignal, a diversified manufacturing company based in Morristown, N.J., has been seeking to expand its aerospace business, which is based in Torrance, Calif. Its plant in Tucson, Ariz., makes motors for regional transport planes containing 19 to 30 seats.

The acquisition of Textron's Lycoming division, which makes engines for planes with 70 to 115 seats, will make AlliedSignal the nation's largest manufacturer of small airplane engines, eclipsing Pratt & Whitney and Allison.

The deal is expected to result in layoffs at Lycoming's plant in Stratford, Conn., which employs more than 2,000 workers, and at its plants in Luton, England; Greer, S.C.; and Dallas, which combined have about 900 workers.

AlliedSignal's Government Electronic Systems plant in Towson will not be affected by the acquisition.

Regional air transport is considered the fastest-growing segment the airline industry.