Whittaker May Sell 3 Divisions to Shed Debt, Focus on Core Business

Simi Valley-based Whittaker Corp. said it may sell as many as three divisions this year to concentrate on its core aerospace business and pay off as much as $50 million of its $146 million in debt.

Whittaker Chief Executive Joseph Alibrandi said the company may sell or spin off its communications division and its Xyplex Networks subsidiary, which makes remote access and networking equipment for the telecommunications industry.

Whittaker acquired Massachusetts-based Xyplex last April for $117.5 million to diversify beyond the aerospace industry. Last month, the company was granted a two-month extension on a $70-million loan it took out to pay for the acquisition.

Whittaker also plans to sell all or part of its defense electronics unit, which makes specialized communications systems, because of a decline in the U.S. defense budget. It also may sell certain real estate holdings.

The company plans to keep its core aerospace business, which makes fluid-control valves and overheating sensors, saying it expects its business to grow in the commercial aircraft industry.

Whittaker has 385 employees in Simi Valley, 140 of them in the defense electronics unit. The aerospace work is done both in Simi Valley and North Hollywood.