L3Harris Technologies To Sell Commercial Aviation Solutions Unit To TJC In $800 Mln Deal

(RTTNews) - L3Harris Technologies, Inc. (LHX) announced Monday that it has signed a definitive agreement to sell Commercial Aviation Solutions or CAS business to an affiliate of middle-market private equity firm TJC L.P. for $800 million.

The deal includes a $700 million cash purchase price and $100 million earnout based on the achievement of certain 2023 and 2024 financial performance targets.

The transaction is expected to close in the first half of 2024, subject to customary closing conditions and regulatory approvals.

The CAS transaction includes the sale of L3Harris' surveillance joint venture and is subject to a right of first refusal. If exercised, an affiliate of TJC will acquire the rest of CAS.

L3Harris' CAS business, with around 1,450 employees, offers pilot training, flight data analytics, avionics, and advanced air mobility products and services, among other capabilities.

Christopher Kubasik, Chair and CEO, L3Harris, said, "Today's announcement is consistent with our multi-year strategy to optimize our national security, technology-focused portfolio. Aligned with our capital allocation priorities, we plan to use the proceeds from this transaction to repay debt, which will accelerate our timeline to reach our debt leverage objective."

In the deal, Morgan Stanley & Co. LLC and Moelis & Co. are serving as financial advisors to L3Harris. J.P. Morgan Securities LLC is acting as financial advisor for TJC L.P.