posted 12-20-2022 06:20 AM               

L3Harris to Acquire Aerojet Rocketdyne

L3Harris Technologies (NYSE: LHX) and Aerojet Rocketdyne Holdings, Inc. (NYSE: AJRD) together announced the signing of a definitive agreement for L3Harris to acquire Aerojet Rocketdyne for $58 per share, in an all-cash transaction valued at $4.7 billion, inclusive of net debt.

This marks L3Harris' second acquisition announcement of 2022, demonstrating its continued focus on delivering critical capabilities to warfighters while strengthening the nation's defense industrial base through increased competition.

"We've heard the DoD leadership loud and clear: they want high-quality, innovative and cost-effective solutions to meet both current and emerging threats, and they're relying upon a strong, competitive industrial base to deliver those solutions," said Christopher E. Kubasik, L3Harris CEO and Chair. "With this acquisition, we will use the combined talents of more than 50,000 employees to drive continuous process improvement, enhance business operations and elevate the performance of this crucial national asset."

A proven provider of world-class propulsion systems and energetics to the DoD, NASA and other partners and allies worldwide, Aerojet Rocketdyne has a 100-year heritage of excellence delivering some of the most significant moments in space exploration and discovery, while leading the industry with investments in rocket propulsion that support America's warfighters and enhance integrated deterrence.

The acquisition will ensure the defense industrial base and our customers will have a strengthened merchant supplier to effectively address both current and emerging threats – and promote scientific discovery and innovation – through targeted investment in advanced missile technologies, hypersonics and more. 

"This agreement will accelerate innovation for national security propulsion solutions while providing a premium cash value for our shareholders and tremendous benefits for our employees, customers, partners and the communities in which we operate," said Eileen P. Drake, CEO and President of Aerojet Rocketdyne. "Joining L3Harris is a testament to the world-class organization and team we've built and represents a natural next phase of our evolution. As part of L3Harris, we will bring our advanced technologies together with their substantial expertise and resources to accelerate our shared purpose: enabling the defense of our nation and space exploration. This is an exciting new chapter for Aerojet Rocketdyne and our over 5,200 dedicated team members, providing them with additional opportunities, and we look forward to working closely with L3Harris to complete this transaction."

Aerojet Rocketdyne currently generates approximately $2.3 billion in annual revenue. The company's employees operate primarily out of advanced manufacturing facilities in Canoga Park, California; Camden, Arkansas; West Palm Beach and Orlando, Florida; Huntsville, Alabama; Orange, Virginia; Redmond, Washington; Stennis Space Center, Mississippi; Jonesborough, Tennessee; and Carlstadt, New Jersey.

The cash acquisition will be funded with existing cash and the issuance of new debt. The deal is expected to close in 2023, subject to required regulatory approvals and clearances and other customary closing conditions.

Additional information regarding this transaction can be found at the L3Harris investor page and the Aerojet Rocketdyne investor page.

posted 07-28-2023 08:48 AM               

L3Harris Completes Aerojet Rocketdyne Acquisition

L3Harris Technologies has completed its acquisition of Aerojet Rocketdyne, forming a fourth business segment at the company.

L3Harris signed a definitive agreement to purchase Aerojet Rocketdyne in December 2022, emphasizing its ability to strengthen the defense industrial base, enhance competition and accelerate innovation for a critical merchant supplier of propulsion systems.

"I'm thrilled to welcome more than 5,000 employees to the L3Harris team today," said Christopher E. Kubasik, Chair and CEO, L3Harris. "With national security at the forefront, we're combining our resources and expertise with Aerojet Rocketdyne's propulsion and energetics capabilities to ensure that the Department of Defense and civil space customers can address critical mission needs globally."

The company also announced Ross Niebergall will serve as President of the Aerojet Rocketdyne segment at L3Harris.

"Our customers demand a competitive environment that produces innovative, agile solutions," Niebergall said. "We will expand on the strong Aerojet Rocketdyne heritage to enhance production and deliver on those expectations."

The acquisition diversifies the L3Harris portfolio, adding considerable long-cycle backlog and broad expertise that enables opportunities in missile defense systems, hypersonics and advanced rocket engines, among other areas.

Aerojet Rocketdyne will be known as Aerojet Rocketdyne, an L3Harris Technologies company.

posted 08-28-2023 02:54 PM               

Here's the new L3 business unit's website.