L3Harris Technologies Announces Sale of Commercial Aviation Solutions Business in $800 Million Deal

MELBOURNE, Fla.-- L3Harris Technologies (NYSE: LHX) has recently made a major announcement regarding the sale of its Commercial Aviation Solutions (CAS) business. An affiliate of TJC L.P. will acquire the CAS business for a whopping $800 million. The deal includes a cash purchase price of $700 million and an additional $100 million earnout based on certain financial performance targets for 2023 and 2024. This acquisition represents a significant strategic move for L3Harris Technologies as it focuses on optimizing its national security portfolio. The transaction is expected to close in the first half of 2024, pending regulatory approvals and customary closing conditions.

L3Harris Technologies' Chair and CEO, Christopher E. Kubasik, expressed his excitement about the announcement, stating, "Today's announcement is consistent with our multi-year strategy to optimize our national security, technology-focused portfolio." He added, "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."

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

The CAS business is comprised of approximately 1,450 employees and offers a range of services, including pilot training, flight data analytics, avionics, and advanced air mobility products. This acquisition by TJC L.P. will strengthen its position in the commercial aviation industry.

Morgan Stanley & Co. LLC and Moelis & Company are serving as financial advisors to L3Harris Technologies, while Sullivan & Cromwell LLP is providing legal advisory services. J.P. Morgan Securities LLC is acting as the financial advisor, and Kirkland & Ellis LLP is serving as the legal counsel for TJC L.P.

About L3Harris Technologies

L3Harris Technologies is a trusted disruptor in the defense industry, focusing on delivering end-to-end technology solutions for national security. With nearly 50,000 employees, the company connects the space, air, land, sea, and cyber domains to meet customers' mission-critical needs.

About TJC

TJC L.P., formerly known as The Jordan Company, is a middle-market private equity firm established in 1982. With original capital commitments exceeding $22 billion, TJC has a 41-year track record of investing in and contributing to the growth of businesses across various industries, including Diversified Industrials, Technology, Telecom & Power, Logistics & Supply Chain, and Consumer & Healthcare. The senior investment team, supported by the Operations Management Group, has been investing together for over 20 years. TJC has offices in New York, Miami, Chicago, and Stamford.

In conclusion, L3Harris Technologies' sale of its Commercial Aviation Solutions business marks an important milestone in the company's strategic plan to optimize its national security portfolio. The $800 million acquisition by TJC L.P. will provide opportunities for growth and expansion in the commercial aviation industry. Both L3Harris Technologies and TJC L.P. are confident that this deal will benefit their respective organizations and contribute to their long-term success.