B/E Aerospace (BEAV) announced that its board of directors has approved the separation of its Consumables Management Segment, which will be known as KLX, through a pro rata dividend distributing all of the shares of KLX common stock to the holders of BEAV common stock. Shareholders will receive one share of KLX common stock for every two shares of BEAV they currently hold.
The distribution of KLX common stock will record on December 5 and distribute on December 16, and will complete the separation of KLX from B/E Aerospace. BEAV will not own any shares of KLX common stock.
Speculation about the divestiture has pushed BEAV higher recently, and the stock has been consolidating in a bullish flag for six trading sessions. A move above the high of the range at $78.60 would have a short-term target at $80.25 natural resistance. Additional upside momentum would target $82.25 the overhead resistance range.
