BEAV - B/E Aerospace

[Guest JoelS]

This one looks interesting:

 

Aerospace company to be divided into two businesses:

http://www.bloomberg.com/news/2014-06-10/b-e-aerospace-to-split-in-two-as-management-reviews-strategy.html

 

"one focused on aircraft interiors and the other on distribution, logistics and technical services. B/E will continue to review further strategic options that could include sales of the units, Co-Chief Executive Officer Amin Khoury said on a conference call with analysts."

 

The restructuring is expected to be completed by early 2015, ruling out a speedy profit for investors looking to gain from activist fund Relational Investors LLC’s involvement with the Wellington, Florida-based manufacturer.

 

Analysts focussed on the short term as per usual.. (I guess 2 quarters is not enough..?)

 

“We do not expect a separation to unlock much value, at least in the near term, in part because we expect a lower valuation for the services business,” Joseph Nadol, senior analyst at JPMorgan Chase & Co. (JPM), wrote in a note to investors.

 

Aerospace exec will lead spinco: "Amin Khoury, the current Chairman and Co- Chief Executive Officer of B/E Aerospace, will serve as our Chairman and Chief Executive Officer following the spin- off, and Tom McCaffrey, the current Chief Financial Officer of B/E Aerospace, will serve as our President and Chief Operating Officer following the spin- off. It is expected that Mr. Khoury will serve in the role of Executive Chairman of B/E Aerospace following the spin- off."

 

http://www.stockspinoffs.com/2014/09/24/aerospace-files-initial-form-10-making-progress-spinoff/

 

[Guest JoelS]

http://spinoffmonitor.com/be-aerospace-beav-releases-more-details-regarding-its-spinoff-of-klx/

 

"The Company currently intends to capitalize KLX through the issuance of approximately $1.2 billion of senior unsecured notes, and to use approximately $750 million of the net proceeds to pay a dividend to B/E Aerospace, leaving KLX with an expected approximately $430 million in cash for general corporate purposes, approximately $110 million of which is expected to be used to settle deferred payments associated with 2014 acquisitions. In addition, the Company expects KLX will establish a secured revolving credit facility for general corporate purposes."

 

company is getting cheaper.

[lincolnc]

Relational was an activist here and I just read a report that they are closing shop.  May create a forced seller situation giving a better entry point. 

[Phaceliacapital]

http://www.sec.gov/Archives/edgar/data/1617898/000104746914007281/a2221260zex-99_1.htm#dg70001_market_and_industry_data