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Rockwell Collins gambles on B/E at the top of the cycle

Rockwell Collins Inc. (COL) is paying a rich price to grow its commercial aircraft exposure, buying B/E Aerospace Inc. (BEAV) for $8.3 billion in cash, stock and debt despite warning signs that new jet demand might have finally peaked. The company says the deal will leave it better positioned for whenever the aerospace cycle eventually turns.

Cedar Rapids, Iowa-based Rockwell Collins is paying upwards of 12 times estimated 2017 Ebitda for B/E, which Barclays analyst Carter Copeland in

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