>>> B/E Aerospace notable CEO Move

Heading into the long weekend, B/E Aerospace (NASDAQ:BEAV) filed the Form 10 for the separation of its consumables management business—to be called KLX—which makes it seem like our thesis for aerospace and defense company may be playing out. In the filing, BEAV revealed that current Chairman and co-CEO Amin Khoury is expected to be the post-spin CEO of KLX. That means Khoury will be abdicating control of the manufacturing arm of the company he co-founded—something which Canaccord Genuity’s Ken Herbert describes as “intriguing” in a note published this morning. After BEAV’s 2Q14 earnings call in late July, the Morning Flash highlighted comments that supported a prior Dealreporter story which stated that the company could pursue a deal similar to Alliant Techsystems (NYSE:ATK) by following its spinoff with an all-stock merger of its remaining segment. And the manufacturing unit has been seen as the most likely candidate for such a move. With key management moving on to consumables—BEAV Chief Financial Officer Tom McCaffrey is also moving over to KLX as Chief Operating Officer—it looks like another stone on the scale in favor of a manufacturing sale. (The counterargument here is that in breakups senior executives often move to whichever business they believe has the best prospects, not because there are plans to sell the remaining company in the near term.)