L3Harris Navigate Strategic Shift: L3Harris Technologies, a prominent player in the defense industry, has announced a strategic move by selling its commercial aviation solutions business to private equity firm TJC L.P. for a total consideration of $800 million. This noteworthy transaction involves a substantial cash purchase price of $700 million, along with an additional $100 million earnout, contingent on achieving specific financial performance targets for the years 2023 and 2024.
The commercial aviation solutions business of L3Harris is a comprehensive offering that encompasses crucial elements such as pilot training, flight data analytics, avionics, and advanced air mobility products and services. With a dedicated workforce of around 1,450 employees, this business segment has played a significant role in the aviation industry.
Explaining the rationale behind this strategic move, L3Harris highlighted that the proceeds from the transaction would be directed towards debt repayment. This decision aligns with the company’s overarching capital allocation priorities, emphasizing a prudent approach to financial management. The move is expected to accelerate L3Harris’ timeline in achieving its debt leverage objectives.
Also Read: Aviation Emission Accord: A Pivotal Leap Towards Sustainable Skies
In navigating this transaction, L3Harris enlisted the expertise of notable financial advisors. Morgan Stanley and Moelis & Co served as financial advisors to L3Harris, while J.P. Morgan Securities LLC provided advisory services to TJC L.P.
This significant development is slated to conclude in the first half of 2024, subject to customary closing conditions and regulatory approvals. The divestiture of the commercial aviation solutions business underscores L3Harris’ strategic focus and commitment to optimizing its portfolio, enhancing financial flexibility, and delivering value to stakeholders.
Our Reader’s Queries
Is L3Harris laying off?
In a recent announcement, L3Harris Technologies, a prominent technology firm, revealed its plans for a series of layoffs in 2023.
Does L3Harris have a severance package?
A severance package is typically included in early retirement offers and is based on your annual salary and years of service with the company. L3Harris, for instance, may offer up to a month’s salary for each year of service, or one to two weeks’ salary.
What is L3Harris best known for?
L3Harris Technologies is a game-changer in the defense industry. Our team of 50,000 experts always keeps customers’ mission-critical needs at the forefront of our minds. We provide end-to-end technology solutions that connect the space, air, land, sea, and cyber domains to ensure national security. Trust us to deliver innovative solutions that disrupt the status quo.
Is L3Harris a dod contractor?
L3Harris Technologies, Inc. is a US-based technology company that specializes in defense contracting and information technology services. They offer a wide range of products, including command and control systems, wireless equipment, tactical radios, avionics and electronic systems, night vision equipment, and spaceborne technology. Their expertise in these areas makes them a leading provider of cutting-edge technology solutions.