B/E Aerospace Inc.NASDAQ
B/E Aerospace: What To Expect From The Future
Wed, Nov. 30, 6:10 PM
- Rockwell Collins (NYSE:COL) +2.7% AH following a Bloomberg report that it is under pressure from activist fund Starboard Value to reconsider its purchase of B/E Aerospace (NASDAQ:BEAV) and instead explore alternative options, including selling itself; BEAV -3.4% AH.
- It is unclear if COL is open to the possibility of a sale, but at least three other top-25 shareholders are said to want to reject the deal in favor of a sale.
- A deal for BEAV would add the largest supplier of equipment for aircraft cabins to COL’s portfolio, which is centered on aircraft communications and computing equipment.
Sat, Nov. 26, 9:11 AM
- It's no surprise that Republican administrations in general are seen as more friendly towards mergers than Democrats, and since the election, arbitrage spreads (the difference between a target's deal price and its current price) have tightened to the 8-9% range from 11%.
- However, on an annualized basis, there are still plenty of deals out there offering double-digit returns.
- Source: Vito Racanelli in Barron's
- Merger-arb shop WallachBeth Capital is fan of Harman International Industries (NYSE:HAR), which earlier this month drew a cash bid from Samsung for $112 per share vs. its close Friday of $109.74. Another pick is B/E Aerospace (NASDAQ:BEAV) which closed at $59.79 and has a cash and stock deal in hand from Rockwell Collins (NYSE:COL) for $62 per share.
- Lutetia Capital likes Cabela's (NYSE:CAB), which closed the week at $62.50 vs. Bass Pro Shops' $65.50 bid.
- The Merger Fund's Roy Behren is confident Qualcomm's (NASDAQ:QCOM) bid for NXP Semiconductors (NASDAQ:NXPI) will pass regulatory muster. NXP's close yesterday of $99.51 is a full 10.5% below the $110 cash offer. If the deal closes in nine months, it's an annualized return of 12.6%.
- Another deal with maybe overblown antitrust concerns is Danone/WhiteWave Foods (NYSE:WWAV). The spread is just 2%, but a close early next year would mean an annualized return over 10%.
- Seeking Alpha contributor Chris DeMuth stays on top of merger arb spreads with his M&A Daily.
Thu, Oct. 27, 8:38 AM
Mon, Oct. 24, 12:51 PM
Mon, Oct. 24, 11:28 AM
- Rockwell Collins (COL -6.5%) says its acquisition of B/E Aerospace (BEAV +15.3%) will triple its sales of equipment in new-generation widebody jetliners such as the Boeing 787 (BA +2.1%) and Airbus A350 (OTCPK:EADSF, OTCPK:EADSY).
- COL CEO Kelly Ortberg also believes the acquisition will nearly double sales related to narrowbody jets, such as top sellers Boeing 737 and Airbus A320.
- Aftermarket sales would help offset weakness in other parts of the combined company, such as sales to business jet manufacturers, which Ortberg expects will fall 15%-20% in FY 2017.
Mon, Oct. 24, 9:15 AM
Sun, Oct. 23, 9:40 PM
- Rcokwell Collins (NYSE:COL) agrees to acquire B/E Aerospace (NASDAQ:BEAV) in a cash and stock deal valued at $6.4B plus the assumption of $1.9B in debt, combining two of the biggest suppliers to airlines and plane makers.
- Each BEAV shareowner will receive $62/share, comprised of $34.10/share in cash and $27.90 in COL common shares (subject to a 7.5% collar), representing a 22.5% premium to Friday's closing price.
- The proposed deal continues the consolidation of the aerospace industry over the past two years as suppliers adjust to pressures from Boeing and Airbus to cut costs.
- Also today, both COL and BEAV issued earnings reports (I, II) that slightly beat analyst expectations.
Sun, Oct. 23, 5:30 PM
Sun, Oct. 23, 5:07 PM
Sat, Oct. 8, 8:25 AM
- “This is the bottom” for Honeywell's (NYSE:HON) businesses exposed to the oil and gas industries, but troubles in the business jet industry “will get worse” next year, CEO David Cote said Friday, a day after the company cut its earnings and sales forecast, causing shares to slide 7.5% in their worst showing in five years.
- "This was a surprise," says William Blair's Nick Heymann, as HON had been considered a safe-haven stock amid sluggish industrial growth, on Cote's reputation and record of delivering on profit targets.
- Morgan Stanley analyst Nigel Coe compared HON’s announcement to a “paella bowl” dropped in front of investors and said “credibility is becoming a growing issue.”
- Other analysts are more confident: J.P. Morgan's Steve Tusa says "it's not that bad in the grand scheme," noting that HON’s profits are off ~5% YTD, roughly in line with its industrial peers.
- “While this quarter and maybe next quarter look to be a little bit worse than anticipated, we still believe they’re well positioned long term to benefit from growth opportunities," according to Edward Jones' Jeff WIndau.
- HON supplies parts to Textron (NYSE:TXT) and General Dynamics (NYSE:GD), which fell a respective 3.6% and 0.8% yesterday, while aerospace parts makers Heico (NYSE:HEI), B/E Aerospace (NASDAQ:BEAV) and TransDigm (NYSE:TDG) each slid more than 1%; also, GE slipped 0.6%, United Technologies (NYSE:UTX) fell 1.5%, and Boeing (NYSE:BA) lost 0.4%.
Fri, Jul. 29, 7:13 AM
Tue, Jul. 26, 2:29 AM
Mon, Jul. 25, 5:30 PM
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Thu, Apr. 28, 7:15 AM
- B/E Aerospace (NASDAQ:BEAV) declares $0.21/share quarterly dividend, in line with previous.
- Forward yield 1.69%
- Payable June 10; for shareholders of record May 16; ex-div May 12.
Tue, Apr. 26, 3:50 AM
- B/E Aerospace (NASDAQ:BEAV): Q1 EPS of $0.81 beats by $0.02.
- Revenue of $717M (+3.9% Y/Y) beats by $18.98M.
- The company raised FY16 outlook: Revenue +4% higher than $2.73B (FY15).
- EPS $3.20-$3.25 against consensus est. of $3.23.
- Operating margin +18%; Interest expense ~$92M; FCF conversion ratio ~75% of net earnings.
Mon, Apr. 25, 5:30 PM
- ABG, ABX, AHGP, AIXG, AKS, ALLY, ARLP, ATI, AVX, AXE, BAX, BEAV, BLMN, BP, CNC, CNX, COH, CPLA, CRS, CTG, CYNO, DD, DFRG, DTE, ENTG, ETR, FBC, FCAU, FCH, FCX, FLIR, FLWS, FMER, GLPI, GLW, GPK, HSY, HUBB, HZO, ICLR, IIVI, IR, JBLU, JNS, LLY, LMT, LPT, MAS, MDXG, MHFI, MMM, NCI, ODP, PAG, PCAR, PCH, PG, PH, PNR, POL, R, RAI, SAH, SAVE, SCL, SIR, SPG, ST, SUI, SVU, TEN, TMUS, TRI, TROW, WAB, WAT, WDR, WHR, WYN