NEW YORK (TheStreet) -- Shares of B/E Aerospace (BEAV) were surging 15.65% to $58.53 on heavy trading volume early Monday morning after the company said yesterday it would be acquired by aerospace component manufacturer Rockwell Collins (COL) for $6.4 billion in cash and stock, or $62 per share.

Rockwell will also assume $1.9 billion in net debt in the deal.

The agreement will grow Rockwell's product offerings and broaden its customer base, and will allow both companies to sell their products to each other's clients.

Rockwell plans to form a new aircraft interior systems division once the deal closes, to be headed by B/E CEO Werner Lieberherr.

The companies expect the deal to close next spring.

Additionally, Wellington, FL-based B/E reported higher-than-expected 2016 third quarter earnings yesterday.

The aircraft interior maker posted earnings of 83 cents per diluted share on revenue of $733 million for the quarter, beating analysts' estimates for earnings of 80 cents per share on revenue of $707 million.

For the full year, the company expects earnings of $3.28 per share vs. its prior earnings view of about $3.25 per share. Wall Street is looking for earnings of $3.27 per share for 2016.

More than 4.64 million shares of B/E have traded so far today, vs. the 30-day average volume of about 757,000 shares.

Rockwell Collins stock was sliding in mid-morning trading today.

(B/E Aerospaceis held in the Growth Seeker portfolio. See all of the holdings with a free trial).


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