L3Harris Sheds Antenna Business In Portfolio Refinement: Details
Portfolio Pulse from Shivani Kumaresan
L3Harris Technologies Inc (NYSE:LHX) is selling its antenna and related businesses to an affiliate of Kanders & Company, Inc. for $200 million, aligning with its strategy to refine its portfolio by divesting non-core assets. The deal includes $175 million in cash and a $25 million seller note, with proceeds expected to be used in line with the company's capital allocation plans. The divested assets are part of the Space & Airborne Systems segment and employ about 375 people. The transaction is anticipated to close this quarter, pending customary closing conditions and regulatory approvals. LHX shares dropped 1.45% to $206.54 following the announcement.
April 05, 2024 | 2:09 pm
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L3Harris Technologies Inc is divesting its antenna and related businesses for $200 million as part of its portfolio refinement strategy, with shares falling 1.45% to $206.54 following the announcement.
The sale of the antenna and related businesses is a significant move for L3Harris Technologies, indicating a strategic shift and refinement of its portfolio. The immediate market reaction was negative, with a 1.45% drop in share price, suggesting investors may have concerns about the divestiture or its terms. However, the long-term impact will depend on how effectively the proceeds are used and the overall success of the company's portfolio-shaping strategy.
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