British defense company BAE Systems (BAESY) hired two banks to sell its U.S. component manufacturing businesses.
The company confirmed Monday that it had hired Wells Fargo (WFC) and JP Morgan (JPM) "to advise on strategic options" regarding its Platform Solutions unit, including a possible sale, Reuters reported.
BAE could raise as much as $2 billion by selling part of its North American commercial aerospace business, Reuters reported last week.
The company is selling Platform Solutions, which makes electronic components including cockpit displays and digital engine controls, to focus on its core business of support and maintenance operations.
"BAE is adapting to changing circumstances," BGC Partners analyst Howard Wheeldon told Reuters. "Bidders would most likely be U.S. companies given that much of the businesses are in North America."
Potential bidders may include U.S. aerospace supplier Goodrich Corp. as well as private equity outfits such as Carlyle Group, Reuters reported.
Still, the company warned that "there can be no certainty that any transaction with respect to the Platform Solutions business will occur."