BAE Systems, Europe’s largest defense contractor, is considering the sale of its US-based component manufacturing business Platform Solutions, for up to $2 billion.
Platform Solutions makes electronic components including cockpit displays for military jets and digital engine controls for commercial aircraft. The company, part of BAE's Electronic, Intelligence and Support (EI&S) division, also produces electrical components for hybrid buses. The unit has facilities in Fort Wayne, Indiana, Irving, Texas, Johnson City, New York, and Redmond, Washington.
BAE is believed to want to sell the two parts of the business in one transaction, but may dispose of them separately if a single bidder cannot be found, reports have suggested.
"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," it added, however.
Potential buyers have already received information about the divisions, and first-round bids are due later this month. Among the possible suitors are other defense contractors and private equity firms.
Anticipating cuts in UK defense procurement programs, BAE aims to grow its customer support and services business, which cover readiness, sustainment, cyber and security.
Platform Solutions is considered to be a non-core business for BAE.
BAE acquired Platform Solutions when it bought the Marconi electronic defense unit in 1999.
