L3Harris Snaps Up Aerojet Rocketdyne in Planned Deal

The propulsion system expert will add significant rocket and energetics capabilities to L3’s portfolio.

Monday, December 19, 2022 at 01:00 PM ET

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Aerojet Rocketdyne’s rocket propulsion systems have powered key milestones in space exploration over its 100-year history. [Courtesy: Aerojet Rocketdyne]

Key Takeaways:

L3Harris Technologies has agreed to acquire Aerojet Rocketdyne Holdings, a propulsion-system expert, for $4.7 billion in an all-cash transaction.
The acquisition, expected to close in 2023, aims to strengthen the defense industrial base and address current and emerging threats through investments in advanced missile technologies and hypersonics.
L3Harris seeks to provide high-quality, innovative, and cost-effective solutions for the Department of Defense and NASA, leveraging Aerojet Rocketdyne's century of experience.

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The consolidation of the aerospace industry continues with the recent announcement that L3Harris Technologies [NYSE: LHX] has signed an agreement to acquire propulsion-system expert Aerojet Rocketdyne Holdings [NYSE: AJRD].

The deal, based on a $58-per-share stock price, all-cash transaction, will be valued at $4.7 billion. Aerojet Rocketdyne currently generates about $2.3 billion annually in revenue. The deal is expected to close in 2023, financed with existing cash alongside the issuance of new debt.