Aircraft cabin interior systems represents the manufacturing half of the planned B/E Aerospace split.

B/E Aerospace to Split Into Manufacturing, Distribution Businesses

June 11, 2014
One business will produce aircraft fixtures and parts, the other will distribute, offer services Strategic review is “ongoing” Plan positions prospective business for growth

B/E Aerospace Inc., the manufacturer of civilian and business aircraft interior seating, lighting, and oxygen systems, among other parts, is planning to split into two separate companies, one that will manufacture aircraft cabin interior equipment; and another that will distribute such products and perform logistics and technical services for the aerospace and energy services markets.

Earlier this month, B/E Aerospace agreed to spend a total of $480 million to buy two businesses, EMTEQ and Fischer, that will add capacity and intellectual property similar to its current portfolio holdings. This followed an announcement in May that it wanted to identify “new strategic alternatives” to enhance investors’ value, specifically listing spin-offs, asset sales, or a merger.

Now, B/E Aerospace said that splitting its organization into two enterprises represents “an important step” in an ongoing strategic review. It noted its directors and managers are continuing to review and pursue strategic alternatives.

B/E said its plan positions both prospective businesses for success, profitability, and sustainable independent companies.

Amin Khoury, chairman and co-CEO explained: “Separating these highly successful businesses into two industry-leading companies will allow each to benefit from increased management focus and operational flexibility, as well as allow the management teams and boards of directors of each business to determine the optimal capital structure, free cash flow allocation policy, growth strategy, compensation system and performance measurement metrics.”

In addition to producing aircraft interior fittings, B/E Aerospace manufactures aerospace fasteners, and supplies consumable products and logistics services to aircraft OEMs.

Commercial aircraft manufacturers are posting records for the numbers of new orders, redesigned aircraft interiors are among the many selling points for new aircraft designs like the Airbus A320 and Boeing 737 MAX.
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An aft cowl skin structure for a Boeing 777, in process on one of several five-axis vertical machining centers with fully nutating heads, at ADI’s plant in Valencia, Calif.

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