BE Aerospace To Split Into Two Companies
The S&P 400 aerospace manufacturer BE Aerospace recently announced that it would be splitting into two independent publicly-traded companies. The decision comes amidst pressure from shareholders to auction assets and also an ongoing interest to pursue a sale of its business. The split would, in theory, make it easier for people to make bids on and potentially purchase the business.
This news comes at a time when Zodiac Aerospace, a direct rival of BE Aerospace in the aircraft seats market and a $10 billion company, announced that it was considering selling the company.The two independent halves of BE Aerospace would have a distinct focus, with one focusing on the manufacturing of aircraft cabin interiors while the other would focus on distribution and logistics for both the aerospace and energy service market. This split is expected to be completed towards the end of the first quarter in 2015. The announced split in lieu of the anticipated selloff dropped shares by about 5%. The stock initially rose about 11% when the company announced that would potentially sell itself.
Investors that were hoping for a quick sale of the company and its assets in response to its strategic business alternatives were likely disappointed at the announcement. BE Aerospace currently specializes in the production of aircraft cabin interior products for both the commercial and business jet markets. In addition, the company is also heavily involved in producing consumables and aerospace fasteners. Customers include most of the world’s major airlines, as well as aircraft manufacturers and aircraft leasing companies. United Airlines, Delta Airlines, Emirates Airlines, Qatar Airways, Air France, KLM, Lufthansa, Qantas, Japan Airlines, and Southwest Airlines are all significant customers. BE Aerospace, which was founded not too long ago as a $3 million company in 1987, is now valued at over $3 billion. They are considered a leading manufacturer in aircraft interior products as well as a leading distributor of fasteners and consumables.
ASAP Semiconductor is a premier distributor of BE Aerospace spare parts
and supports any aerospace platforms that requires BE Aerospace parts. We work directly with BE Aerospace to supply parts for both aircraft cabin interiors as well as aerospace fasteners and consumables. Browse your inventory on www.asap-purchasing.com
or contact one of our sales staff at email@example.com
to see how we can assist you today.
Posted on October 21, 2014