WASHINGTON — Boeing is considering selling off a small defense subsidiary that makes surveillance equipment for the US military and intelligence community, Breaking Defense has learned.
Boeing has engaged financial advisers to seek out potential buyers for its Digital Receiver Technology Inc. business, as well as to gauge interest in unspecified defense programs under Boeing’s aftermarket business division, Bloomberg first reported on Tuesday, citing people familiar with the discussions.
A source with knowledge of the discussions told Breaking Defense that conversations about the DRT sale have been going on for about a year — long before the U.S. planemaker became embroiled in a reputational crisis after a door plug ripped off a Boeing 737 MAX airliner in mid-air in January.
Boeing declined to comment on Tuesday. During a Bank of America conference earlier today, Chief Financial Officer Brian West said he wouldn’t speculate on whether the company would sell off portions of its defense business, but said the reported divestments were “pretty small to us, both economically and strategically.”
“We love our strategic position across our defense portfolio,” he said.
Boeing acquired Germantown, Md.-based DRT in 2008, when the aerospace giant was seeking to expand its presence in the intelligence sector. DRT, which sold for an undisclosed amount, specializes in the production of wireless receivers and transceivers.
Richard Aboulafia, an aerospace expert with AeroDynamic Advisories, said a sale of DRT is unlikely to have any material financial impact for Boeing, which has been struggling under the weight of $39 billion in debt and could face further financial headwinds as it considers re-acquiring Spirit AeroSystems, a Boeing spin off which makes large fuselage components for Boeing and Airbus commercial jets.
Selling DRT could