Arlington Capital Partners (“Arlington”), a Washington, DC-area private equity firm, today announced that an affiliate has entered into definitive agreements to acquire L3Harris Technologies’ (NYSE:LHX) Electron Devices and Narda Microwave-West divisions (the “Company”). The agreement is subject to customary closing conditions and regulatory approvals.
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After closing, the Company will operate independently as Stellant Systems (“Stellant”) and will be a standalone platform for Arlington in the mission-critical defense electronics market. The transaction is occurring in partnership with current L3Harris Electron Devices’ leadership, who upon close are expected to continue to operate and lead the Company.
The Company is a market leading provider of RF 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, and is the only domestic provider of space-qualified TWTs. The Company has over 800 employees across its three facilities in Torrance, CA, Williamsport, PA and Folsom, CA.
Peter Manos, a Managing Partner at Arlington, said, “Identifying and investing behind mission-critical systems and subsystems within the defense end market have long been areas of focus for Arlington. The Company is the domestic leader in its market with a first-mover advantage in new technologies, which we are privileged to support. We are eager to hit the ground running in partnership with current management to not only address the Company’s core opportunity set, but also capture the market opportunities we have collectively identified to produce additional growth.”
Ben Ramundo, a Vice President at Arlington, said “The combination of the Company’s unparalleled technical achievements and close customer relationships creates an ideal foundation on which to build an organization with a renewed and singular focus on what it does best. While we have tremendous respect for the Company’s storied legacy, and are grateful for L3Harris’ contributions to that journey, we are excited to invest behind the current management team to reinvigorate the Company’s innovative spirit and enter promising new markets.”
Harris Williams and Kirkland & Ellis are serving as financial and legal advisors to Arlington, respectively. Houlihan Lokey and Holland & Knight are serving as financial and legal advisors to L3Harris, respectively. The transaction is expected to close before year-end.
About Arlington Capital Partners
Arlington Capital Partners is a Washington, DC-based private equity firm that is currently investing out of Arlington Capital Partners V, L.P., 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 & defense, government services and technology, healthcare, and business services and software. The firm’s professionals and network have a unique combination of operating and private equity experience that enable Arlington to be a value-added investor. Arlington invests in companies in partnership with high quality management teams that are motivated to establish and/or advance their company’s position as leading competitors in their field.
For more information: www.arlingtoncap.com
Peter Manos & Ben Ramundo
Arlington Capital Partners
5425 Wisconsin Avenue, Suite 200
Chevy Chase, MD 20815