An affiliate of private equity firm TJC has agreed to purchase the L3Harris Commercial Aviation Solutions (CAS) business for $800 million, including $700 million cash and $100 million based on certain 2023 and 2024 performance targets. TJC expects the acquisition to close in the first half of 2024, “subject to customary closing conditions and regulatory approvals.”
L3Harris CAS employs about 1,450 people and provides flight training, flight data analytics, avionics, and advanced air mobility products. An L3Harris surveillance joint venture is included in the CAS transaction, although it is subject to a right of first refusal, according to L3Harris. “If exercised, an affiliate of TJC L.P. will acquire the rest of CAS.” An L3Harris spokeswoman would not confirm whether the joint venture is Aviation Communication & Surveillance Systems, which is 70 percent owned by L3Harris Technologies and Thales.
“Today’s announcement is consistent with our multi-year strategy to optimize our national security, technology-focused portfolio,” said L3Harris chair and CEO Christopher Kubasik. “Aligned with our capital allocation priorities, we plan to use the proceeds from this transaction to repay debt, which will accelerate our timeline to reach our debt leverage objective.”
Founded in 1982, TJC owns a diverse set of companies, with original capital commitments of more than $22 billion. Its aerospace-related holdings include ACR Group, a manufacturer of satellite communications, navigation, and rescue technology products.