L3Harris Technologies is selling its commercial aviation solutions business to private equity firm TJC L.P. for $800m, the defense company said on Monday.
The deal includes a $700m cash purchase price and a $100m earnout based on the achievement of certain financial performance targets for this year and 2024.
The commercial aviation solutions business of L3Harris offers pilot training, flight data analytics, avionics and advanced air mobility products and services and has around 1,450 employees.
“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,” L3Harris said in a statement.
Morgan Stanley and Moelis & Co were financial advisers to L3Harris, while J.P. Morgan Securities LLC advised TJC L.P.
The transaction is expected to close in the first half of 2024.
Get the week’s top news delivered directly to your inbox – Sign up for our newsletter
L3Harris Technologies, Inc. is an American multinational aerospace and defense technology company that provides advanced defense and commercial technologies across air, land, sea, space, and cyber domains. It was formed from the merger of L3 Technologies (formerly L-3 Communications) and Harris Corporation on June 29, 2019, and was expected to be the sixth-largest defense contractor in the United States.
Source: Yahoo! Finance
Can’t stop reading? Read more
Copenhagen Infrastructure Partners secures €1.3bn first close for flagship green credit fund
Copenhagen Infrastructure Partners secures €1.3bn first close for flagship green credit fund...
Ontario Teachers’ reports 6.7% return as assets reach $279.4bn
Ontario Teachers’ reports 6.7% return as assets reach $279.4bn Ontario Teachers’ Pension Plan...
BNP Paribas gathers €540m for GP stakes strategy targeting private capital managers
BNP Paribas gathers €540m for GP stakes strategy targeting private capital managers BNP Paribas...