BAE confirms it may sell US avionics business
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UK defence contractor BAE Systems today (13 September) confirmed it is looking at the option of selling off its US-based Platform Solutions business but said there was no certainty that the transaction will take place.
Press speculation at the weekend reported that BAE – which is steeling itself for swingeing UK defence budget cuts including the abandonment or scaling back of the Royal Navy aircraft carriers it is contracted to build – would be selling part of the US commercial aerospace business for up to $2 billion in an auction that might include Goodrich, Honeywell, Rockwell Collins, Woodward Governor and Moog.
The platform solutions business, which employs over 4000 people, makes flight and engine controls, mission avionics, advanced display systems, and power management and energy systems for commercial and military customers.
The official statement from BAE to the London Stock Exchange said: "The company regularly reviews its business portfolio to ensure it is delivering the best value for shareholders and customers. Against this background BAE Systems confirms that it has engaged Wells Fargo and JP Morgan to advise on strategic options with regard to the Platform Solutions business, including a possible sale. There can be no certainty that any transaction with respect to the Platform Solutions business will occur."
