Only three years after industrial conglomerate ITT revealed plans to split into three independent businesses, the military contractor that emerged from that breakup is itself restructuring. Virginia-based Exelis, one of the 20 biggest defense companies in the world, announced yesterday it will spin off its government services unit to focus on four high-tech “strategic growth platforms” spanning defense, civil and commercial markets. CEO Dave Melcher said the move was a necessary step to improve management focus and unlock shareholder value. What he didn’t say is that once the two entities are formally separated, both will be more attractive acquisition candidates during the coming wave of defense-sector consolidation. I have written a commentary for Forbes here.
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