L3Harris Technologies : to Sell Combat Propulsion Systems Unit to Renk for About $400 Million

By Dave Sebastian

L3Harris Technologies Inc. said it has agreed to sell its combat propulsion systems unit to Renk AG for about $400 million in cash as the aerospace and defense company seeks to focus on its core technologies.

L3Harris on Monday also said it agreed to sell its military-training business for $1.05 billion to Canadian aerospace company CAE Inc. L3Harris said it plans to use proceeds from the divestitures for share buybacks.

The combat propulsion systems business makes military engines and transmissions and generated about $230 million in revenue in 2020, the company said.

Renk is a Germany-based maker of gear units, automatic transmissions, slide bearings, suspension systems, couplings and test systems.

The companies expect the deal to close in the second half of the year.

Write to Dave Sebastian at [e-mail]

(END) Dow Jones Newswires

03-01-21 0646ET