L3Harris Technologies has announced the signing of a definitive agreement under which an affiliate of TJC will acquire L3Harris’s Commercial Aviation Solutions (CAS) business for $800 million.
The acquisition includes a $700 million cash purchase price and $100 million earnout based on the achievement of certain 2023 and 2024 financial performance targets, which together represent an approximate 15x LTM 9/30 EBITDA purchase multiple. The transaction is expected to close in the first half of 2024 and is subject to customary closing conditions and regulatory approvals.
“Today’s announcement is consistent with our multiyear strategy to optimize our national security, technology-focused portfolio,” said Christopher E. Kubasik, chair and CEO, L3Harris. “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.”
TJC (formerly know