Portfolio shaping not slowing down
By
Nick Wakeman
Harris decision to shed its Aerostructures business is another example of how companies are putting an emphasis on tightly defining who they are and what they do.
The portfolio shaping continues in the government market with Harris Corp. selling off its Aerostructures business for $210 million.
While it isn’t an IT business, the deal reflects the ongoing trend of companies looking at their business and shedding what doesn’t fit.
What makes this deal noteworthy is that Harris just acquired it as part of its $4.75 billion acquisition of Exelis last year.
“The sale of Aerostructures reflects our strategy to optimize our business portfolio,” said William Brown, chairman, president and CEO of Harris.
Harris is selling the company to Albany International Corp for $187 million in cash and assumption of a $23 million capitalized lease.
The Aerostructures business makes a variety of products for commercial and military aircraft including wings, tanks, rotor blades and airframes.
Harris is no stranger to fine tuning its portfolio. In 2013, it sold its broadcast group, but it also has made select acquisitions as it builds it capabilities in the government market.
This reshaping of company portfolios through acquisitions and divestitures shows how much of an emphasis companies are putting on defining who they are and what they do. Every piece of the business has to point back to that identity and help describe it.