L3Harris Technologies Inc (LHX) said on Monday that it would sell its commercial aviation solutions business to private equity company TJC L.P. in a deal estimated at $800 million.
The transaction is expected to be completed in the first half of 2024.
The agreement includes a $700 million cash purchase price and a $100 million earnout based on the accomplishment of particular financial performance objectives for 2023 and 2024.
“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,” L3Harris said in a statement, cited by Reuters.
The commercial aviation solutions business of L3Harris Technologies offers pilot training, flight data analytics, avionics along with advanced air mobility products and services.
Morgan Stanley and Moelis & Co acted as financial advisers to L3Harris, while J.P. Morgan Securities LLC provided financial advice to TJC L.P.
The shares of L3Harris Technologies Inc (LHX) closed 1.62% ($3.09) lower at $187.92 in New York on Monday, as they reversed a gain from the previous market session.
The company’s total market cap now stands at $35.618 billion.
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