Why? Why would Boeing take on our mess when it has enough problems of its own right now? What exactly do we have to contribute - especially in a sorry state the company is in right now?
What would be the logic behind it? I would be really grateful if somebody would enlighten me.
Boeing might buy Waco yo ise it for a storage locker, but it won't buy the personnel.
Not if but when L-3 Waco is sold, the acquiring company can not retain any supervision or management if they wish to succeed. The work talent that is still there is very capable of high quality maintenance and modification. Also the planning group needs to go or be retrained. Maybe Chip and Joanna Gains could make something profitable happen there. Who Knows.
I think they will sell the fuzing division in Cincinnati. It does not seem to fit the new business model. That place was a cash cow for years but it has been s---ed dry by corporate with all of the forced mergers and bean counters that prioritized cash over everything... All of the smart people at that place have either left or are on their way out so someone will be acquiring a mess.
Bill brown said preclosing that day 1+ 6 months would look very different than day 1.
They have no niche, commercial pilot training has BIG players in the game as does underwater drones.
Finally the kube has already and swiftly demonstrated . What two three years that he cannot guide corporation to success and certainty demonstrated no sense of corporate allegiance and that proud 100 year history of Harris isn't going to permit him to takeover.
He cut best buyout deal for himself with Harris what $42 million.
Don't buy a home in FL kube my prediction.
It's obvious that L3Harris will be acquired sooner or later.. Here are some facts..
Go Big or Go Home
Here are the previous largest U.S. takobvers in the sector:
2011 - UTC bought Goodrich $18B
2015 - Lockheed bought Sikorsky $9B
2016 - Rockwell Collins bought B/E Aerospace $8.1B
2017 - UTC bought Rockwell Collins 29.5B
2018 - Northrop Grumman Corp. bought Orbital $9.2
2019 - Harris bought L3 Technologies $19.6B
Source: Bloomberg
I think I answered your question..
My fear is the damage has already been done to a lot of the divisions that focus on weapon systems. Kubasik-led Corporate forced a lot of unnecessary consolidations on them and then all of sudden told them to put everything on hold when the Harris merger happened. Now you have physical locations that are supposed to act as a "division" even though their product offerings have very little to do with one another. I know of a lot of key people that got fed up and left these locations (Cincinnati, Texas, Anaheim, etc).
Boeing would love to get a hold of Waco for sure... the VIP SAM fleet that is currently being depoted in San Antonio clogs up the system. Waco has the room and hanger space to support that fleet. Depot, paint etc. 737s, 757s, 747-8s.
BAE is also an off the radar company that would love to grab GVL and or Waco.
Only time will tell, but with GVL and Waco not fitting the "new vision", you should be worried.
The fact that our new leaders were quoted in an interview as saying they will immediately start working to spin-off or sell some businesses certainly invites such rumors. The fact is that L3 has a couple of weapon/munition companies that don’t fit the new L3Harris vision. Any of the large primes might be interested in acquiring them, whether it’s Boeing, GD, Raytheon, or LM.
I can see Boeing or GD buying a chunk of businesses that focus on weapon systems. With the new organizational structure, it does not seem that those businesses align with what they want to focus on.
The ink is barely dry and another rumor? Where is this one coming from?