American aerospace and defence giant L3Harris Technologies plans to intensify its focus on defence products by selling its commercial aviation business to US investment company TJC for $700 million.
L3Harris disclosed the planned sale of its Commercial Aviation Solutions division on 27 November, saying the deal remains subject to regulatory approvals and is likely to close in the first half of 2024.
“Today’s announcement is consistent with our multi-year strategy to optimise our national security, technology-focused portfolio,” says L3Harris chief executive Christopher Kubasik. “We plan to use the proceeds from this transaction to repay debt.”
L3Harris’s Commercial Aviation Solutions business sells avionics, flight-data analytics, electric air taxi products, flight simulators and pilot-training services. It operates a global product-support network and employs some 1,450 people.
The agreement calls for TJC to acquire the business for $700 million in cash, but it will pay up to $100 million more if the acquired company hits 2023 and 2024 financial targets.
Formerly called The Jordan Company, TJC is an investment firm specialising in acquiring companies working in the telecom, power, logistics, supply chain and consumer industries.
L3Harris formed in July 2019 when L3 Technologies combined with Harris Corporation to create what was billed as the sixth-largest US defence company. It generated $17 billion in operating revenue last year.