CPP hires banks for sale, may fetch $1 billion: sources
NEW YORK (Reuters) - Consolidated Precision Products Corp (CPP), an aerospace and defense parts maker, has hired banks to advise it on selling the company, which could fetch up to $1 billion, people familiar with the matter said.
Morgan Stanley (MS.N) and Lazard Ltd (LAZ.N) have been recently hired to seek a buyer for CPP, three years after Washington D.C.-based private equity firm Arlington Capital Partners bought the company, these people said.
Headquartered in Pomona, California, CPP makes components and sub-assemblies for military and commercial aircraft, artillery, missiles and munitions systems, as well as business jets and helicopters.
Its customers include Airbus, Boeing Co (BA.N), General Electric Co (GE.N), Honeywell International Inc (HON.N) and Lockheed Martin Corp (LMT.N), according to its website.
Representatives for Arlington did not respond to requests for comment. Morgan Stanley and Lazard declined to comment.
The company has yet to start the auction process, people familiar with the matter said, adding that it is expected to draw interest from private equity bidders and strategic buyers -- which operate in the same industry as the seller.
Potential strategic buyers could include Precision Castparts Corp (PCP.N) and Allegheny Technologies Inc (ATI) (ATI.N), a person familiar with the matter said.
Arlington has over $1.3 billion of committed capital and has invested in industries such as government contracting, federal and commercial IT and engineering services, and aerospace and defense. It bought CPP in April 2008 together with the company's management team led by Steve Clodfelter.
(Reporting by Soyoung Kim. Editing by Robert MacMillan)
- Exclusive: Angry with Washington, 1 in 4 Americans open to secession
- Scots spurn independence in historic vote, devolution battle begins |
- Alibaba surges 38 percent on massive demand in market debut |
- Eight bodies found after attack on Guinea Ebola education team
- French jets strike in Iraq, expanding U.S.-led campaign against Islamic State |