BAE Puts Platform Solutions Unit Up For Sale
British defence company BAE Systems on Monday said it had hired advisors to sell its Platform Solutions business.
"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," the company said in a statement.
"There can be no certainty that any transaction with respect to the Platform Solutions business will occur." Sources told Reuters on Saturday that BAE was looking to sell part of its North American commercial aerospace business in an auction that could generate up to $2 billion.
They added that possible bidders may include Goodrich and Honeywell International , along with rival aerospace and industrial component manufacturers Rockwell Collins, Woodward Governor and Moog .
Private-equity firms, such as Carlyle Group, Warburg Pincus and Greenbriar Equity Group could also be keen, the sources said.
BAE's platform solutions business makes flight and engine controls, mission avionics, advanced display systems, and power management and energy systems for commercial and military customers.
Platform Solutions employs some 4,200 people at sites worldwide.
Shares in BAE, which have fallen 10 percent in 2010, closed at 322.9 pence on Friday, valuing the group at around 11 billion pounds ($17 billion).