TJC Agrees to Acquire L3Harris’ Commercial Aviation Solutions Business

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The aviation industry is about to witness a significant change as TJC, L.P. ("TJC") announced today that it has entered into a definitive agreement to acquire L3Harris' Commercial Aviation Solutions business ("CAS") for a whopping $700 million in cash, plus an additional earnout payment of up to $100 million. This strategic move by TJC is expected to create a major impact and shape the future of the commercial aviation industry.

CAS, with its two operating business units, is a key player in the aviation industry. The Avionics unit designs and manufactures mission-critical avionics products, enhancing safety and situational awareness for next-generation requirements. Their innovative products include ADS-B NextGen surveillance, collision avoidance systems, navigation products, processors, and satellite communications equipment. These products are used across commercial air transport, business and regional jet, and military end markets.

On the other hand, the Commercial Training Solutions ("CTS") unit provides a comprehensive suite of aircraft training solutions. This includes manufacturing training systems such as full flight simulators and flight training devices, as well as offering airline-specific qualification courses and refresher training. The airline academy under CTS supports cadets throughout their training period, providing flight training, instruction, type rating, and placement with regional and major airlines.

The acquisition of CAS by TJC is seen as a perfect match, bringing together the expertise of both companies to provide high-reliability solutions to the aviation industry. TJC, a middle-market private equity firm with a strong track record of investing in various industries, aims to build upon the success of CAS and further enhance its offerings.

Commenting on the acquisition, Erik Fagan, a Partner at TJC, expressed his excitement about partnering with CAS's management team to deliver top-notch solutions to customers. He mentioned that CAS's long history of providing highly engineered products at the intersection of data, communications, and safety makes them a global leader in the industry.

The transaction is expected to close in the first half of 2024, subject to customary closing conditions and regulatory approvals. With the acquisition, TJC is poised to make a lasting impact in the aviation sector.

J.P. Morgan Securities LLC is serving as TJC's financial advisor for the acquisition, while Kirkland & Ellis LLP is providing legal counsel. On the other hand, L3Harris is being advised by Morgan Stanley & Co. LLC and Moelis & Company LLC as financial advisors, with Sullivan & Cromwell LLP serving as legal counsel.

This news comes as a testament to TJC's commitment to investing in and contributing to the growth of businesses across various industries. With a 41-year track record and original capital commitments exceeding $22 billion, TJC has established itself as a reputable private equity firm. Its senior investment team, backed by the Operations Management Group, focuses on driving operational improvements in portfolio companies.

TJC has offices in New York, Miami, Chicago, and Stamford, further strengthening its presence in key financial and business centers. For more information about TJC and its investments, visit www.tjclp.com.

L3Harris Technologies, as the Trusted Disruptor in the defense industry, has always prioritized customer's mission-critical needs. With nearly 50,000 employees, the company delivers end-to-end technology solutions that connect the space, air, land, sea, and cyber domains, ensuring national security. To learn more about L3Harris Technologies and its offerings, visit www.l3harris.com.

In conclusion, TJC's agreement to acquire L3Harris' Commercial Aviation Solutions business marks a significant development in the aviation industry. With TJC's expertise and investment capabilities, coupled with CAS's strong market presence, the future looks promising for the advancement of aviation technology and training solutions. This strategic move is undoubtedly set to shape the industry and bring about safer and more efficient skies for years to come.