Exelis‘ board of directors (NYSE: XLS) has approved a plan to spin off the company’s military and government services business unit, known as Exelis Mission Systems, into a new independent company by the summer of 2014.
The new company will be led by Kenneth Hunzeker, president and general manager of the unit, and former ITT Corp. (NYSE: ITT) Chairman and CEO Louis Giuliano will serve as non-executive chairman of the board., Exelis said Wednesday.
David Melcher, Exelis president and CEO, said the company intends for the plan to support growth plans for a global market environment and help both Exelis and the new company fulfill requirements of their respective customers.
McLean, Va.-based Exelis intends to focus its investments in four portfolio areas such as; intelligence, surveillance and reconnaissance and analytics; electronic warfare and aerostructures.
The mission systems business has about 7, 000 employees across more than 100 locations and provides facilities management, logistics and network communications services to its customer base.
Exelis estimates the business to have nearly $1.5 billion in 2013 revenue.