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March 1, 2021, 6:16 a.m. EST

L3Harris to sell its military training, combat propulsion businesses for $1.45 billion

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By Tomi Kilgore

CAE Inc. /zigman2/quotes/200553760/composite CAE +3.42% /zigman2/quotes/205699916/delayed CA:CAE +3.03% announced Monday an agreement to buy L3Harris Technologies Inc.'s /zigman2/quotes/201997607/composite LHX +0.30% military training business for $1.05 billion. CAE expects the deal to add to earnings in the first full year after the closing, which is expected to occur in the second half of 2120. L3Harris' military training business had revenue of about $500 million in 2020. Separately, L3Harris said it is also selling its combat propulsion systems and related business to Renk AG for $400 million in cash. That business had annual revenue of about $230 million. L3Harris plans to use the proceeds from the sales for share repurchases. "hese agreements place our Military Training and Combat Propulsion Systems and related businesses with well-suited buyers, while positioning L3Harris to further focus on its core technologies and execute its strategic priorities," said L3Harris Chief Executive William Brown. CAE and L3Harris stocks were both inactive in premarket trading. Over the past three months, shares of L3Harris have lost 5.2% and CAE have gained 8.3%, while the S&P 500 /zigman2/quotes/210599714/realtime SPX +0.77% has advanced 4.1%.

/zigman2/quotes/200553760/composite
US : U.S.: NYSE
$ 31.19
+1.03 +3.42%
Volume: 608,006
April 9, 2021 4:00p
P/E Ratio
783.67
Dividend Yield
0.00%
Market Cap
$9.13 billion
Rev. per Employee
$259,297
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/zigman2/quotes/205699916/delayed
CA : Canada: Toronto
$ 39.07
+1.15 +3.03%
Volume: 669,799
April 9, 2021 5:40p
P/E Ratio
1,091
Dividend Yield
0.00%
Market Cap
$11.46 billion
Rev. per Employee
$345,067
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/zigman2/quotes/201997607/composite
US : U.S.: NYSE
$ 208.12
+0.63 +0.30%
Volume: 967,563
April 9, 2021 4:00p
P/E Ratio
40.15
Dividend Yield
1.96%
Market Cap
$42.78 billion
Rev. per Employee
$379,042
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/zigman2/quotes/210599714/realtime
US : S&P US
4,128.80
+31.63 +0.77%
Volume: 0.00
April 9, 2021 5:15p
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