TJC Agrees to Acquire L3Harris’ Commercial Aviation Solutions Business

Rhea-AI Summary

TJC, L.P. (TJC) affiliate of Resolute Fund VI, L.P. (Resolute VI) to acquire L3Harris Technologies' Commercial Aviation Solutions business (CAS) for $700 million, plus up to $100 million contingent earnout payment. The transaction is expected to close in the first half of 2024 and is subject to customary closing conditions and regulatory approvals. CAS includes Avionics and Commercial Training Solutions units, serving over 160 aircraft platforms globally.

NEW YORK--(BUSINESS WIRE)-- TJC, L.P. (“TJC”), announced today that an affiliate of the Resolute Fund VI, L.P. (“Resolute VI”) has entered into a definitive agreement with L3Harris Technologies (NYSE:LHX) to acquire its Commercial Aviation Solutions business (“CAS,” or the “Company”) for $700 million (“Cash Purchase Price,”) plus a contingent earnout payment of up to $100 million based on the Company’s Avionics business unit hitting performance targets in 2023 and 2024. The transaction is expected to close in the first half of 2024 and is subject to customary closing conditions and regulatory approvals.

CAS has two operating business units; the Avionics unit designs and manufactures mission critical, IP-driven avionics products, and the Commercial Training Solutions (“CTS”) unit provides an integrated suite of aircraft training solutions.

The Avionics unit is a global leader in aviation that enhances safety and increases efficiency and situational awareness for next-generation requirements and helps its customers create safer skies. Their products include ADS-B NextGen surveillance, configurable voice and data recorders, collision avoidance systems, navigation products, display systems, processors and additional products such as satellite communications equipment and data analytics services. The business serves over 160 distinct aircraft platforms across commercial air transport, business and regional jet, and military end markets.

The CTS unit manufactures training systems and provides airline training, including recurring courses for pilots and airline academy participants. The training systems suite includes full flight simulators, flight training devices, flat panel trainers, and relevant training courseware and equipment upgrades. Airline training includes airline-specific qualification courses, refresher training and simulator time. Its airline academy provides an integrated environment that supports cadets over a 12-18 month training period, including flight training, instruction, type rating, and placement with regional and major airlines.

“L3Harris’ CAS business is a global leader with a long history of providing highly engineered products at the intersection of data, communications and safety,” said Erik Fagan, a Partner at TJC. “We look forward to partnering with their strong management team to build upon their history of success to provide high-reliability solutions to their customers.”

J.P. Morgan Securities LLC is acting as financial advisor and Kirkland & Ellis LLP is serving as legal counsel for TJC. Morgan Stanley & Co. LLC and Moelis & Company LLC are acting as financial advisors and Sullivan & Cromwell LLP is serving as legal counsel for L3Harris.

About TJC

TJC (formerly known as The Jordan Company), founded in 1982, is a middle-market private equity firm that has raised funds with original capital commitments in excess of $22 billion and has a 41-year track record of investing in and contributing to the growth of many businesses across a wide range of industries including Diversified Industrials; Technology, Telecom & Power; Logistics & Supply Chain and Consumer & Healthcare. The senior investment team has been investing together for over 20 years and is supported by the Operations Management Group, which was established in 1988 to initiate and support operational improvements in portfolio companies. TJC has offices in New York, Miami, Chicago and Stamford. For more information, visit www.tjclp.com.

About L3Harris Technologies

L3Harris Technologies is the Trusted Disruptor in the defense industry. With customer’s mission critical needs always in mind, its nearly 50,000 employees deliver end-to-end technology solutions connecting the space, air, land, sea and cyber domains in the interest of national security. For more information, visit: www.l3harris.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20231127156049/en/

Jonathan Marino

Prosek Partners

jmarino@prosek.com

Source: TJC, L.P.

FAQ

What is TJC, L.P. (TJC) acquiring from L3Harris Technologies (NYSE:LHX)?

TJC, L.P. (TJC) is acquiring L3Harris Technologies' Commercial Aviation Solutions business (CAS) for $700 million, plus a contingent earnout payment of up to $100 million.

When is the transaction expected to close?

The transaction is expected to close in the first half of 2024 and is subject to customary closing conditions and regulatory approvals.

What are the business units included in CAS?

CAS includes the Avionics unit, which designs and manufactures mission-critical avionics products, and the Commercial Training Solutions (CTS) unit, which provides an integrated suite of aircraft training solutions.

What are the products and services offered by the Avionics unit of CAS?

The Avionics unit offers ADS-B NextGen surveillance, voice and data recorders, collision avoidance systems, navigation products, display systems, processors, satellite communications equipment, and data analytics services.

What does the Commercial Training Solutions (CTS) unit of CAS provide?

The CTS unit provides airline training, including full flight simulators, flight training devices, flat panel trainers, and relevant training courseware and equipment upgrades.

Who is acting as the financial advisor and legal counsel for TJC?

J.P. Morgan Securities LLC is acting as the financial advisor, and Kirkland & Ellis LLP is serving as legal counsel for TJC.

Who is acting as the financial advisors and legal counsel for L3Harris?

Morgan Stanley & Co. LLC and Moelis & Company LLC are acting as financial advisors, and Sullivan & Cromwell LLP is serving as legal counsel for L3Harris.