L3Harris Technologies said today it has agreed to sell its military training business to CAE for just under $1.05 billion and its combat propulsion systems and related businesses to German company RENK AG for $400 million.
The military training business has annual sales of about $500 million and provides training systems, simulations and related services to U.S. and foreign militaries, L3Harris said.
In its own announcement, CAE said the acquisitions includes Link Simulation and Training, Doss Aviation and AMI. CAE said it expects the deal to expand its role as a "platform-agnostic training systems integrator by diversifying CAE's training and simulation leadership in the air domain, complementing land and naval training solutions, and enhancing CAE's training and simulation capabilities in space and cyber."
The combat propulsion systems and related businesses have annual sales of about $230 million and build military engines and transmissions, L3Harris said.
Both deals are expected to close in the second half of this year.
L3Harris has divested multiple units since merging the two companies. Bill Brown, the company's chief executive, has said the company ultimately plans to sell 8% to 10% of the company.
Among them so far have been L3Harris' airport security business and its applied kilovolts and analytical instrumentation business.