Rockwell Collins has significantly broadened its customer base with the $6.3 billion acquisition of B/E Aerospace. The iconic avionics and electronics maker is now in the cabin completion business but the two worlds are not that far apart. B/E is a Florida-based supplier of business jet cabin fittings from galleys to lavs. All those things need to be connected these days and that’s where the two seemingly disparate companies make an interesting fit. Most of B/E’s business is with airlines while much of Rockwell Collins’s sales are to the bizjet market.
“B/E is very strong in relationships with airlines,” Rockwell Chief Executive Officer Kelly Ortberg told Reuters. “We’re stronger with aircraft makers as well as business aviation operators and the military. We’ll be able to sell our respective products into a much broader market base than either of us could do independently.” There’s little product overlap between the two companies and the rationalization is expected to make both more efficient. B/E Chairman Amin Khoury said the merger allows his company to tap the lucrative luxury business jet market because of Rockwell Collins’ heavy penetration there. “Having that information and time to market directly to the owners of the aircraft is a tremendous opportunity that we’re looking to take advantage of,” he said. “It’s not something we can do on our own.”
