Renk Aktiengesellschaft (DB:ZAR) completed the acquisition of Combat Propulsion Systems and related businesses from L3Harris Technologies, Inc..
July 01, 2021
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Renk Aktiengesellschaft (DB:ZAR) signed definitive agreement to acquire Combat Propulsion Systems and related businesses from L3Harris Technologies, Inc. (NYSE:LHX) for approximately $400 million on March 1, 2021. The consideration was to be paid in cash. In a related transaction, CAE signed definitive agreement to acquire L3Harris' Military Training business from L3Harris Technologies for approximately $1.05 billion on March 1, 2021. Annual revenue was $230 million. L3Harris expects to use the proceeds from the divestitures to repurchase shares of its common stock. The transaction is subject to customary closing conditions, including receipt of regulatory approvals, and is expected to close in the second half of 2021. Greg Starkins, Azad Badakhsh, Brad Davis and Joseph Bonanni of Moelis & Company LLC is serving as financial advisor and Sebastian Tiller, Jamin R. Koslowe, Sophie A. Staples, Michael R. Isby, Krista B. McManus, Peter Guryan, Mark A. Brod and William B. Sheehan of Simpson Thacher & Bartlett LLP as legal counsel for L3Harris. Christof Alexander Schneider, Mauritz von Einem, Andrea Panzer-Heemeier, Tobias Neufeld, Ulrich Lienhard, Marcus Nothhelfer, Saskia Kirschbaum, Sina Janke and Tanja of ARQIS Rechtsanwälte acted as legal advisor to Renk Aktiengesellschaft. James Sullivan, Zack Young, Helen Galloway, Jessica Williams-Vickery, Jason Waite, Clare Draper, Kyle Woods, Andy Howard and Ronnie Gosselin of Alston Bird LLP acted as legal advisor to Renk Aktiengesellschaft. Keith A. Pagnani, Scott B. Crofton, Kimberly Meng Han, Lisa M. Morales, Donna Kim, Matthew M. Friestedt, Davis J. Wang, Mark Schenkel, Ari B. Blaut, Christopher L. Mann, Eric H. Queen, Joseph J. Matelis and Michael Rosenthal of Sullivan & Cromwell LLP acted as legal advisor to L3Harris Technologies, Inc.
Renk Aktiengesellschaft (DB:ZAR) completed the acquisition of Combat Propulsion Systems and related businesses from L3Harris Technologies, Inc. (NYSE:LHX) on July 2, 2021. In a related Trasnsaction, L3Harris Technologies has completed the sale of its military training business to CAE for a cash consideration of $1.05 billion. The transaction was to create RENK America. RENK America expects to retain L3Harris' nearly 400 employees. As part of the transaction, RENK Group also acquired L3Magnet-Motor GmbH in Starnberg.
L3Harris Technologies, Inc. specializes in the design, manufacturing and marketing of information and communication equipment for the defense, government agency, and commercial structure markets. Net sales break down by family of products as follows:
- integrated mission systems (32.4%): intelligence, surveillance and reconnaissance systems, communication systems, electrical and electronic systems for marine platforms, advanced electro-optical and infrared solutions, etc. ;
- space and airborne systems (28.3%): payload systems, sensors, complete mission solutions, confidential intelligence systems, cyber defense solutions, electronic warfare systems, etc;
- communication systems (23.8%): tactical communication systems, broadband communications, integrated visual communications solutions, etc;
- aviation systems (15.5%): air defense systems, commercial aircraft equipment, pilot training solutions and air traffic management systems.
Net sales break down by source of income between sales of products (78.9%) and services (26.1%).
The United States account for 90.2% of net sales.