(Bloomberg) -- Senior Plc, a supplier to Boeing Co. and Daimler AG, is exploring a sale of its aerostructure unit, according to people familiar with the matter.
The British aerospace and automotive company is working with adviser Lazard Ltd. on the potential divestment, said the people, who asked not to be identified because the discussions are private. Senior is reaching out to buyout firms and aerospace companies and may seek at least 450 million pounds ($591 million), the people said.
A final decision hasn't been made and Senior could decide to keep the unit, the people said.
A representative for Senior declined to comment. Lazard wasn't immediately able to comment.
The aerostructure unit, which supplies components for airplanes, is part of Senior's aerospace business, which accounts for about 70% of overall revenue, according to the company's website. The aerospace business also includes fluid conveyance and engines.
In November, Senior announced restructuring plans, including a plant closure and job cuts, in response to challenges in some markets for its aerospace business as well as its Flexonics division, which supplies products for land vehicles and industrial applications.
The company's shares have declined 6% this year, giving it a market value of about 747 million pounds.
Aerospace and defense deals have surged seven-fold this year to more than $100 billion, according to data compiled by Bloomberg.
In the U.K., Advent International is taking over defense supplier Cobham Plc in a $5 billion deal. In the U.S., United Technologies Corp. agreed in June to buy Raytheon Co. in an all-stock deal, forming an aerospace and defense giant with $74 billion in sales in one of the industry's biggest transactions ever.
To contact the reporters on this story: Aaron Kirchfeld in London at akirchfeld@bloomberg.net;Dinesh Nair in London at dnair5@bloomberg.net
To contact the editors responsible for this story: Ben Scent at bscent@bloomberg.net, Michael Hytha, Matthew Monks
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