BAE Systems has hired two banks to explore its options in selling its platform solutions business, the company confirmed this week.
J.P. Morgan and Wells Fargo & Co. will help BAE evaluate its platform solutions division, comprising bus and truck hybrid propulsion systems and flight controls.
“They may be assembling a war chest for acquisitions in the defense and security services, both areas they want to build up in,” Zafar Khan, an analyst at SG Securities in London, told Bloomberg. “But they may also want to remind people how much their portfolio could be worth, given that the stock has fallen so much.”
The company has tried to find its niche by making purchases such as buying the Atlantic Marine Holding Co., which works with the U.S. Navy. BAE has a “large pipeline of targets” in the United States., regional head Linda Hudson said in July.