L3Harris Technologies has announced definitive plans to sell its commercial aviation solutions business (CAS) to private equity firm TJC L.P. for up to US$800 million.
The acquisition includes a $700 million cash purchase price and a $100 million earnout based on specific 2023 and 2024 financial targets.
The transaction is expected to close in the first half of 2024, subject to regulatory approvals. The announcement aligns with L3Harris’s ongoing plans to optimise and focus on its defence portfolio, according to its CEO Christopher E. Kubasik.
“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,” he added.
The CAS transaction also includes the sale of L3Harris’s surveillance joint venture and is subject to the right of first refusal.
L3Harris’s CAS offers flight training, avionics, flight data analysis and advanced air mobility projects, amongst other services. It employs around 1,450 people.
TJC is a private equity firm with a 41-year track record of investing in and contributing to the growth of businesses across various industries, from Technology, Logistics and Supply Chain, and Telecom and Power.
