L3Harris Technologies has announced a deal to sell its commercial aviation business, Commercial Aviation Solutions, to the private-equity firm TJC for up to $800 million. This move is part of L3Harris’ strategy to reduce debt and focus on national security and technology. The sale includes pilot training courses, flight data analytics, avionics, and advanced air mobility solutions, and it is expected to close in the first half of 2024, subject to regulatory approval.
- Debt Reduction Strategy: L3Harris Technologies is selling its commercial aviation business to a private-equity firm affiliate for up to $800 million as part of its strategy to reduce debt and prioritize its national security and technology-focused portfolio.
- Focus on National Security: The sale allows L3Harris to concentrate more on its national security and technology-related endeavors, aligning with its capital allocation priorities.
- Deal Details: The agreement includes $700 million in cash and an additional $100 million earnout based on financial performance targets in 2023 and 2024. The deal is expected to close in the first half of 2024, pending regulatory approval.