L3Harris to sell commercial aviation business for $800 million – Breaking Defense

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The L3Harris logo is displayed on the floor of the 2022 Air Force Association conference in National Harbor, Maryland. (Justin Katz/Defensive Breakdown)

Washington – L3 Harris Today, Commercial Aviation Solutions (CAS) announced that it will sell its business to private equity firm TJC for $800 million.

The sale includes a cash purchase price of $700 million, with the remaining $100 million tied to “the achievement of certain 2023 and 2024 financial performance goals.” Release L3Haris. The L3Harris CAS business employs about 1,450 people and provides “pilot training, flight data analysis, avionics and advanced air mobility products and services,” according to the statement.

The sale of CAS will help meet the company’s two key objectives: paying down debt and focusing its portfolio on defense-related contracts.

The company has closed two significant defense-related acquisitions so far this year. In January, L3Harris Completed the purchase Viasat’s Link 16 line approximately $2 billion. Then in July the company Aerojet Rocketdyne A massive $4.7 billion acquisition, overcoming regulators’ antitrust concerns Already entered At Lockheed Martin.

Following the Aerojet acquisition, L3Harris’ debt stands at about $13.5 billion, Chief Financial Officer Michelle Turner told investors during the company’s third-quarter earnings call in October. Executives are aiming for a half-billion-dollar reduction plan to reach $13 billion in debt by the end of 2023. According to Turner.

“We’re taking a portfolio approach,” L3Harris CEO Chris Kubasik said during an October call. “We’re looking to find businesses that fit our nation’s defense strategy and operate in emerging markets. And then, we’re weeding out businesses that don’t fit our strategy — but are still good businesses — but are not part of our focus.”

Kubasik has for years He shared his purpose. The 16 acquisitions of Aerojet and Lynk put L3Harris as the sixth largest US defense major. 2019 integration L3 Technologies and Harris Corporation. L3Harris programs now span sea, land, air, space and cyber operations.

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