BAE Systems puts North American units up for sale
New York, September 12, 2010
British defense contractor BAE Systems has hired advisors to sell part of its North American commercial aerospace business in an auction that could generate up to $2 billion, sources familiar with the matter told Reuters.
BAE Systems, which hired JPMorgan Chase and Wells Fargo as advisors, is seeking the first round of bids for assets from its platform solutions unit by next week, said two sources, who asked not to be identified because the auction has not been made public.
The auction could raise $1.5 billion to $2 billion for BAE Systems, Europe's largest defense contractor, said one of the sources, who cautioned that the process was at a very early stage.
Private equity firm Carlyle Group, Goodrich Corp and Honeywell International are among the interested parties for assets from BAE Systems' platform solutions group, the source said.
BAE declined to comment. Goodrich, Honeywell, Carlyle, JPMorgan and Wells Fargo were not immediately available for comment.
Other possible bidders may include rival aerospace and industrial component manufacturers, such as Rockwell Collins, Woodward Governor Co or Moog Inc, and private-equity firms, such as Warburg Pincus and Greenbriar Equity Group, said the Wall Street Journal, which first reported news of the auction on Saturday.
One of the units for sale makes aircraft-engine controls for General Electric Co, said the Journal, citing people familiar with the matter.
The other units include a commercial avionics business and a division that makes hybrid propulsion systems for buses and trucks, the newspaper said.
Those units are grouped together under "platform solutions," a business that sells various control systems used in commercial and military aircraft and ground vehicles, the Journal said. - Reuters