WASHINGTON- Multiple private equity groups and at least one aerospace supplier are competing to purchase Boeing’s Jeppesen navigation unit for more than $8 billion, according to sources familiar with the ongoing sale process.
Boeing plans to request formal bids from interested buyers in the coming weeks, six sources told Reuters, speaking on condition of anonymity due to the private nature of the discussions.
Photo- ForeFlightBoeing Jeppesen Unit Sale
Jeppesen, which provides navigation products and software, represents a highly desirable acquisition that could strengthen aerospace contractors and appeal to private equity firms, which typically seek businesses generating steady cash flow.
TransDigm, with a market value of approximately $77 billion, has completed several smaller acquisitions in recent years, including DART Aerospace for $360 million in 2022, Calspan for $725 million and CPI’s electron device business for $1.4 billion in 2023, and Raptor Scientific for $655 million in 2024.
If TransDigm succeeds in acquiring Jeppesen, it would mark the company’s largest acquisition to date and provide access to new product offerings that would complement its existing components-focused operations.
Photo- ForeFlightPrivate Firms Alliances
In recent weeks, multiple private equity firms have formed partnerships to pursue the Jeppesen acquisition. These alliances include Vista Equity partnering with Warburg Pincus, Advent International joining forces with Permira, and TPG teaming up with Francisco Partners.
Aircraft parts manufacturer TransDigm remains in the running, while technology-focused investment firms Thoma Bravo and Silver Lake are submitting separate bids.
Honeywell and Carlyle previously expressed interest in acquiring Jeppesen. Whether these companies plan to submit final offers remains unclear. Honeywell currently offers competing navigation products in its portfolio.
Deal Could Break Recent Records
If completed, the Jeppesen sale would rank among the largest carve-out transactions in recent years. For comparison, Ball Corporation sold its aerospace assets to Britain’s BAE Systems for approximately $5.6 billion in 2023.
The final offers are expected to value Jeppesen between $8 billion and $9 billion, according to three sources. This price significantly exceeded Boeing’s initial expectation of more than $6 billion when the auction began late last year.
Strong buyer interest has driven up the expected sale price. Boeing plans to further reduce the list of potential buyers in the coming weeks before soliciting final bids.
Photo- Honeywell AerospaceBoeing Restructuring
The planned sale of Jeppesen forms part of CEO Kelly Ortberg’s strategy to streamline Boeing’s operations and reduce company debt by divesting non-core businesses. In February, British Airways announced its purchase of Boeing’s maintenance operation at London’s Gatwick Airport.
Boeing is also working to sell its drone business, Insitu, in a separate transaction.
Boeing purchased Englewood, Colorado-based Jeppesen for $1.5 billion in 2000. The company founder, Elrey Borge Jeppesen, began selling the world’s first navigation charts for pilots in the mid-1930s while flying for Boeing-owned airlines.
The navigation company has since evolved into a critical provider of flight information, charts, and navigation tools used throughout the global aviation industry.
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