NEW YORK (TheStreet) -- Avionics company Rockwell Collins (COL) announced that it had agreed to purchase aircraft interior item maker B/E Aerospace (BEAV) in a deal valued at roughly $8.3 billion including debt on Sunday.
"Rockwell Collins historically has been very strong in the front of the airplane, B/E is very strong in the cabin interior," Rockwell Collins CEO Kelly Ortberg said Monday on CNBC's "Squawk on the Street." "It's a great combination to increase the scope and scale of our company."
There's not much overlap between what Rockwell Collins and B/E make right now. Rockwell specializes in aircraft navigation and communication technology, while B/E makes seats, lighting and galleys, among other products.
Ortberg argued that the merger allows Rockwell Collins to blend together two complementary product lines.
"We see an evolution of the next digital airplane where our technology will help improve the market penetration of their interior systems," he said.
Shares of Rockwell Collins were down 5.28% to $80 in Monday morning trading, while shares of B/E were soaring 15.48% to $58.45.
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:
We rate ROCKWELL COLLINS INC as a Buy with a ratings score of B. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, growth in earnings per share, increase in net income, expanding profit margins and notable return on equity. We feel its strengths outweigh the fact that the company shows weak operating cash flow.
You can view the full analysis from the report here: COL