Defense Contractor L3Harris Divests Commercial Aviation Business For $800M - What's The Focus?
Portfolio Pulse from Shivani Kumaresan
L3Harris Technologies Inc (NYSE:LHX) has agreed to sell its Commercial Aviation Solutions (CAS) business to an affiliate of TJC L.P. for $800 million, comprising $700 million in cash and $100 million in earnout. The sale is part of L3Harris' strategy to focus on national security and technology and is expected to close in the first half of 2024, pending regulatory approval. Proceeds will be used to repay debt. LHX shares dropped by 0.76% to $189.55.
November 27, 2023 | 3:45 pm
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L3Harris Technologies is selling its CAS business for $800M to focus on its core national security operations. The deal is expected to close in H1 2024, and proceeds will be used to reduce debt.
The divestiture of the CAS business aligns with L3Harris' strategic focus on national security and technology. While the sale could be positive in the long term, the slight drop in share price indicates a neutral to mildly negative short-term market reaction. The use of proceeds to repay debt is financially prudent but may not excite investors looking for growth investments.
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