US-based technology company and defence contractor L3Harris Technologies has agreed an $800m deal to sell its Commercial Aviation Solutions (CAS) business to an affiliate of private equity firm TJC LP.
The deal, made up by a $700m cash purchase and $100m earnout based on certain 2023 and 2024 financial targets, will see L3Harris sell its entire CAS operations, including its surveillance joint venture.
L3Harris’ CAS business, which employs around 1,450 employees, includes pilot training services, flight data analytics, avionics, and advanced air mobility products and services.
Christopher E. Kubasik, Chair and CEO of 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.”
The company has been slowly selling off most of its businesses in the commercial aviation and airports industry over the last few years, with the billion-dollar sale of its airport security business to engineering company Leidos in 2020, and the divestiture of its air traffic control solutions business to Frequentis in 2021.
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This latest deal, which is subject to a right of first refusal, with TJC LP, which was formerly known as The Jordan Company, is expected to close in the first half of 2024 subject to regulatory approvals.