Houlihan Lokey Advises L3Harris Technologies
Houlihan Lokey is pleased to announce that L3Harris Technologies (NYSE:LHX) (L3Harris) has divested two divisions, Electron Devices and Narda Microwave-West (collectively, the “company”), to Arlington Capital Partners (Arlington). The transaction closed on October 10, 2021.
The company is a market-leading provider of radio frequency amplification products for the space, electronic warfare, radar, medical, and industrial end markets. With a multi-generational legacy supporting the most important military and intelligence programs, as well as addressing some of the most complicated technical requirements in medical and industrial markets, the company designs and assembles traveling wave tubes (TWTs), nano microwave power modules, and other related subsystems. The company has over 800 employees across its three facilities in Williamsport, Pennsylvania, as well as Torrance and Folsom, California. After close, the company will be known as Stellant Systems.
L3Harris is a global aerospace and defense technology innovator, delivering end-to-end solutions that meet customers’ mission-critical needs. The firm has approximately $18 billion in annual revenue and 48,000 employees, with customers in more than 100 countries.
Arlington Capital Partners is a Washington, D.C.-based private equity firm that is currently investing out of Arlington Capital Partners V, LP, a $1.7 billion fund. The firm has managed approximately $4.0 billion of committed capital via five investment funds. Arlington is focused on middle-market investment opportunities in growth industries, including aerospace and defense; government services and technology; healthcare; and business services and software.
Houlihan Lokey served as the exclusive sellside financial advisor to L3Harris and assisted in initiating, structuring, and negotiating the transaction on its behalf. This is the third aerospace, defense, and government (ADG) transaction on which Houlihan Lokey has advised L3Harris in recent years. The transaction exemplifies the continued success of Houlihan Lokey’s dedicated coverage of the aerospace and defense sector.
Houlihan Lokey’s Aerospace, Defense & Government practice within the global Industrials Group is a leading M&A advisor to aerospace, defense, and government services companies. Since 2020, the team has closed more than 35 transactions worth nearly $8 billion in enterprise value. With a staff of approximately 30 investment bankers in Washington, D.C., London, and Los Angeles, Houlihan Lokey’s ADG practice is among the largest dedicated industry banking groups worldwide. In 2020, the Industrials Group was once again ranked as the No. 1 M&A advisor for all U.S. industrial transactions, according to Refinitiv.
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