BAE Systems, the world's second-largest defence equipment maker today said that it has put its US-based platform solutions business for sale as the British company looks to divest non-core assets amid a slump in defence spending in Europe and the US.
During the weekend, media had speculated that BAE had hired advisors to sell its Platform Solutions business and the sale could generate up to $2 billion.
Responding to the rumours, BAE today said in a statement, ''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.''
The London-based company however warned, ''There can be no certainty that any transaction with respect to the platform solutions business will occur.''
BAE's platform solutions business, which is based in New York and employs over 4,200 people worldwide, makes a wide range of military and commercial platforms, including fixed- and rotary-wing aircraft, and ground vehicles with capabilities in vehicle management, human-machine interface, and power management.
Platform solutions, designs and produces fly-by-wire flight controls; full-authority digital engine controls; cockpit, head-up and helmet-mounted displays; autopilots, pilot sticks and inceptors; hybrid electric propulsion systems; vehicle power management systems; and data distribution and flight-deck systems.
Among the possible bidders could be rivals like Goodrich Corp, Honeywell International Inc, Rockwell Collins Inc, Woodward Governor Co and Moog Inc and private-equity firms, such as Carlyle Group, Warburg Pincus and Greenbriar Equity Group LLC, reported Reuters citing sources.