L3Harris Aviation Unit Sale: High-Flying Deal

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L3Harris Aviation Unit Sale

In a high-stakes maneuver reminiscent of a precision airshow, defense titan L3Harris Technologies, counseled by the expert team at Sullivan & Cromwell, announced a blockbuster move on Monday. The firm is offloading its high-flying commercial aviation division to the ambitious, New York-based private equity firm TJC LP, in a dazzling deal valued at $800 million.

L3Harris Aviation Unit Sale : A Closer Look

Under this meticulously engineered agreement, an affiliate of TJC LP, navigated by the legal eagles at Kirkland & Ellis, is set to land L3Harris’ prized Commercial Aviation Solutions unit. The purchase price is an eye-popping $700 million in cash, bolstered by a $100 million earnout, contingent on the unit hitting specific financial milestones in 2023 and 2024. This strategy, emerging from the corporate cockpit of Melbourne, Florida-based L3Harris, underscores a clear-eyed focus on fiscal precision.

Final Approach: Closing the Deal

The transaction is charting a course for completion in the first half of 2024, cruising towards the requisite approvals and customary closing conditions.

Strategic Altitude: L3Harris’ Master Plan

Christopher E. Kubasik, L3Harris’ seasoned chair and CEO, shared in a press briefing that this divestment aligns seamlessly with the company’s long-term flight plan. The objective? To refine its portfolio with a laser focus on national security and cutting-edge technology.