Aerospace-parts maker Esterline Technologies Corp is exploring a potential sale, according to people familiar with the matter Reuters reported.
The process is at an early stage, the people said, and there is no guarantee the company will reach a deal to sell itself. On Friday morning, July 20, Esterline had a market value of US$2.2 billion; following the report, Esterline shares rose 10% to US$83, giving it a market cap of US$2.4 billion.
The Bellevue, Washington, company is a major supplier to the aerospace industry. It produces cockpit components, sensors and a range of advanced materials for commercial jetliners, business jets, and military aircraft such as the Lockheed Martin F-35 fighter. Those markets accounted for around 70% of its US$2 billion in sales last year.
The aerospace sector has been dramatically reshaped over the past few years by a string of deals. Last year, industrial conglomerate United Technologies signed a deal to buy airplane-parts maker Rockwell Collins for US$23 billion, in what would be the biggest aerospace deal in history. Boeing agreed in May to pay about US$3.2 billion for parts specialist KLX, and remains on the lookout for deals to expand its services arm. And earlier this year, Northrop Grumman bought fellow defense contractor Orbital ATK, which was created by Alliant-Orbital deal, for nearly US$8 billion.
Full Content: Reuters
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