Harris to Sell Aerostructures Division to Albany International

Harris Corporation announced that it has entered into an agreement to divest its Aerostructures business to Albany International Corporation for an enterprise value of $210 million, including $187 million in cash at closing and assumption of a $23 million capitalized lease.  The division designs, manufactures, and assembles advanced composite structures for commercial and military aircraft, and has significant positions on growth platforms including Lockheed Martin's Joint Strike Figher, Boeing's 787 and Sikorsky's CH-53K.  Harris acquired the business as part of its 2015 acquisition of Exelis Inc.

In 2015, the division generated revenue of $77 million and is projected to generate 2016 revenue in the range of $80 million to $90 million with adjusted EBITDA of $13 million to $15 million.  Albany projects that revenue will exceed $200 million by 2020 with adjusted EBITDA margins approaching 20 percent.

The deal is expected to close by the end of the first quarter or early second quarter.