Publicly-traded L3 Technologies has agreed to sell its Vertex Aerospace business to American Industrial Partners for $540 million in cash. The sale of Vertex includes its Crestview Aerospace and TCS business units.
Vertex Aerospace provides aviation logistics services, supply chain management, and maintenance, repair and overhaul services. Crestview Aerospace is a fabricator and assembler of rotary aircraft components and TCS provides aviation-related engineering services and logistics support. The combined business serves the US Department of Defense, including the Air Force, Navy, Army, Marine Corps, Customs Service, and Drug Enforcement Administration.
Vertex Aerospace was founded in 1977 as the product support division of the Beechcraft Company and was purchased by Raytheon in 1980 and renamed Raytheon Aerospace. L3 acquired the business from Raytheon in 2003. Today the company is headquartered north of Jackson in Madison, MS. Click HERE for the Vertex website.
American Industrial Partners makes equity and debt investments in North American-headquartered industrial companies that have revenues from $100 million to $750 million. Transaction values are typically less than $500 million. The firm was founded in 1989 and is headquartered in New York (www.americanindustrial.com).
L3 Technologies (NYSE:LLL) is a provider of a range of communication, electronic and sensor systems used on military, homeland security and commercial platforms. In 2017 the company had revenues of $9.6 billion and approximately 31,000 employees. L3 is headquartered in New York (www.l3t.com).
Moelis & Company was the financial advisor to L3.
Closing of this transaction is expected during the summer of 2018.
© 2018 Private Equity Professional | May 2, 2018
