SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of report (Date of Earliest Event Reported): February 26, 1999
BE AEROSPACE, INC.
(Exact name of registrant as specified in charter)
DELAWARE 0-18348 06-1209796
(State or other (Commission File Number) (I.R.S. Employer
jurisdiction Identification No.)
of incorporation)
1400 Corporate Center Way, Wellington, Florida 33414
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (561) 791-5000
Exhibit Index Appears on page [___].
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Item 2. Acquisition or Disposition of Assets.
B/E Aerospace Inc. (the "Company") announced on February 26, 1999 that
it has completed its previously announced transaction to sell a 51% interest in
its In-Flight Entertainment ("IFE") business to a wholly owned subsidiary of
Sextant Avionique, S.A. ("Sextant"). Sextant, which supplies complete avionics
systems for both military and civil aircraft, is one of the world's leading
suppliers of aircraft avionics systems and the largest supplier of avionics
systems to Airbus Industrie.
Item 7. Financial Statements and Exhibits.
(c) Exhibits.
Exhibit No. Description
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99.1 Press Release, dated February 26, 1999.
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Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
BE AEROSPACE, INC.
By: /s/ Thomas P. McCaffrey
-----------------------------
Name: Thomas P. McCaffrey
Title: Corporate Senior Vice President of
Administration and Chief Financial Officer
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EXHIBIT INDEX
Exhibit No. Description of Exhibits Page
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99.1 Press Release, dated February 26, 1999.
EXHIBIT 99.1
NEWS RELEASE
CONTACT: Jay Jacobson
FOR IMMEDIATE RELEASE Financial Relations
(914) 722-2737
B/E AEROSPACE, INC. ANNOUNCES COMPLETION OF SALE
OF 51% INTEREST IN ITS IN-FLIGHT ENTERTAINMENT GROUP TO
SEXTANT AVIONIQUE FOR $62 MILLION
WELLINGTON, Fla., Feb. 26, 1999--B/E Aerospace, Inc. (Nasdaq-NMS: BEAV)
today announced that it has completed its previously announced transaction to
sell a 51-percent interest in its In-Flight Entertainment (IFE) business to a
wholly owned subsidiary of Sextant Avionique, S.A. (Sextant). Sextant, which
supplies complete avionics systems for both military and civil aircraft, is one
of the world's leading suppliers of aircraft avionics systems and the largest
supplier of such systems to Airbus Industrie.
B/E Chief Executive Officer Robert J. Khoury stated, "We believe this
partnership will generate substantial shareholder value. Sextant In-Flight
Systems, LLC (SIFS) now has the only true video on demand system in service in
the world, and it is believed to be the most reliable interactive system flying.
B/E's and Sextant's respective leadership positions in the commercial aircraft
cabin interior products and cockpit avionics systems markets will expand SIFS's
standing as a major industry participant in in-flight entertainment products.
Sextant's state-of-the-art technologies, access to Thomson CSF technologies and
their outstanding relationship with Airbus are also expected to benefit the new
venture and dramatically add value to the partners. This is a classic example of
the whole becoming substantially greater than the sum of its parts."
Khoury continued, "We believe the combination of the access to
Sextant's technologies and B/E's position as a market leader will enable the
joint venture to
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become the market leader as the industry grows to a $2-billion-per-year level,
thereby dramatically increasing the value of B/E's remaining 49-percent
interest, while at the same time reducing B/E's risk and research and
development spending in the near term. The proceeds from the sale will allow us
to substantially reduce our bank borrowings, adding further to an already
comfortable level of liquidity."
B/E Aerospace, Inc. is the world's leading manufacturer of cabin
interior products, serving virtually all the world's airlines and aircraft
manufacturers. B/E designs, develops, manufactures, sells and services a broad
line of passenger cabin interior products for both commercial and general
aviation aircraft and provides interior design, reconfiguration and conversion
services to its customers throughout the world.
This Report contains forward-looking statements that involve risks and
uncertainties. The Company's actual experience may differ materially from that
anticipated in such statements. Factors that might cause such a difference
include, but are not limited to, those discussed in the Company's filings with
the Securities and Exchange Commission, including its most recent Form 10-Q,
proxy statement and Form 10-K/A, and in "Risk Factors" in both its Form S-3
filed on December 28, 1998, relating to the registration of the Company's common
stock, and S-4 filed on January 13, 1999, relating to the registration of the
Company's senior subordinated notes, as well as future events that have the
effect of reducing the Company's available operating income and cash balances,
such as unexpected operating losses, delays in the integration of the Company's
acquired businesses, conditions in the airline industry, delivery of the
Company's MDDS interactive video system, delays in the implementation of the
Company's Year 2000 readiness program, customer delivery requirements, new or
expected refurbishments or capital expenditures or cash expenditures related to
possible future acquisitions.
