Investing.com -- Boeing Co (NYSE:BA).'s potential sale of its Jeppesen navigation unit has garnered attention from major aviation suppliers and private equity firms, with first-round bids expected to be submitted next week, Bloomberg reported, citing people familiar with the matter. The sale of the navigation unit is of interest to a number of key players in the industry, according to sources who wished to remain anonymous.
Among the companies showing interest in Jeppesen are RTX Corp. and Honeywell International Inc (NASDAQ:HON)., the report said. These firms are reportedly evaluating the unit, which provides interactive flight plans. In addition, private equity firms such as Advent, Blackstone (NYSE:BX) Inc., Carlyle Group (NASDAQ:CG) Inc., Thoma Bravo, Veritas Capital, and Warburg Pincus are also showing early interest in the unit. These firms are expected to submit their bids before the Jan. 29 deadline.
Other potential bidders include GE Aerospace and TransDigm Group Inc., who may also study the business. According to sources, Jeppesen could fetch a price between $6 billion and $8 billion for Boeing. The sale of Jeppesen is part of Boeing's strategy to streamline its operations and focus on its core businesses.
In other recent news, Boeing Co. anticipates losses in its Q4 results due to strikes and program charges. The preliminary financial results, which are based on management estimates, show the Commercial Airplanes segment expects to report a revenue of $4.8 billion, with pre-tax earnings charges of $1.1 billion on the 777X and 767 programs. Furthermore, the Defense, Space & Security division is projected to recognize pre-tax earnings charges totaling $1.7 billion. Despite these setbacks, Boeing projects the first delivery of the 777-9 aircraft in 2026 and has resumed production of its 737, 767, and 777/777X aircraft models. In addition, Boeing experienced a significant decrease in annual deliveries in 2024, with a total of 348 commercial jets delivered. The company is currently negotiating a new deal with US prosecutors related to two fatal 737 MAX crashes. Lastly, Barclays (LON:BARC) upgraded Boeing stock from Equalweight to Overweight, expecting sustained positive momentum in production and deliveries throughout 2025. These are the recent developments at Boeing Co.
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