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Boeing's Jeppesen navigation unit is drawing major interest from private equity firms and aerospace suppliers, with bids now exceeding $8 billion.

This highly competitive auction has seen multiple heavyweight contenders vying for the sought-after asset, which provides aviation navigation products and software.

According to sources familiar with the matter, Boeing has invited final bids for Jeppesen, with the list of potential buyers narrowing.

Among the strongest contenders are private equity groups such as Vista Equity and Warburg Pincus, Advent International and Permira, as well as TPG and Francisco Partners.

Aerospace parts manufacturer TransDigm has also emerged as a significant bidder, alongside tech-focused buyout firms Thoma Bravo and Silver Lake, Reuters said.

Additionally, Honeywell and Carlyle had expressed interest in acquiring Jeppesen, but it remains unclear whether they will proceed with final offers. Honeywell already operates competing navigation products, which may influence its bidding strategy.

The valuation for Jeppesen has climbed significantly since Boeing initially expected to secure around $6 billion from the sale. The strong demand has pushed estimates to between $8 billion and $9 billion.

If the sale proceeds at this valuation, it would mark one of the largest carve-out deals in recent history. By comparison, in 2023, Ball Corp sold its aerospace assets to BAE Systems for $5.6 billion.

Boeing is expected to further refine the list of contenders in the coming weeks before final-round offers are submitted.

Boeing Moves to Sell Jeppesen as Part of Debt-Reduction Strategy

The planned sale of Jeppesen is part of Boeing CEO Kelly Ortberg's broader effort to streamline the company's operations and reduce debt.

In February, British Airways announced it was purchasing Boeing's maintenance operation at Gatwick Airport, further emphasizing the company's push to offload non-core businesses. Boeing is also exploring the sale of its drone unit, Insitu.

Founded by Elrey Borge Jeppesen in the 1930s, the company pioneered aviation navigation charts and has been a key player in the industry for decades.

According to Devdiscourse, Boeing acquired Jeppesen for $1.5 billion in 2000, and the unit has since become a critical provider of navigation solutions for pilots and airlines worldwide.

Private equity firms are particularly attracted to Jeppesen's stable cash flow, while aerospace contractors see the acquisition as an opportunity to expand their offerings.

If TransDigm successfully acquires Jeppesen, it would mark the company's largest acquisition to date, complementing its existing portfolio of aerospace components and software solutions.

With final offers approaching, Boeing is expected to make a decision in the coming weeks.

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