L3 to sell Vertex Aerospace business to American Industrial Partners

By John Liang / May 2, 2018 at 11:38 AM

L3 Technologies announced this week it has agreed to sell its Vertex Aerospace business to American Industrial Partners for $540 million in cash.

As part of the deal, L3 will also sell its Crestview Aerospace and TCS business units, which are included in the Aerospace Systems business segment, according to a company statement.

L3 chief executive Chris Kubasik said in a statement that the move was "a strategic step toward optimizing L3's portfolio. We will use the proceeds from the sale to invest in the continued growth of L3, consistent with our capital allocation strategy and plans."

The deal, "subject to customary closing conditions and regulatory approvals," is anticipated to be completed this summer, according to the statement.

Vertex Aerospace provides aviation logistics services, supply chain management, and maintenance, repair and overhaul services. Crestview Aerospace provides select rotary aircraft component fabrication and assembly, and TCS provides select engineering services and logistics support, according to L3.

In calendar year 2017, Crestview Aerospace and TCS generated $115 million of net sales, the L3 statement reads.

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