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 propulsion-system expert Aerojet Rocketdyne Holdings for $4.7 billion in an all-cash transaction, expected to close in 2023.
The acquisition aims to consolidate the aerospace industry, strengthen the defense industrial base, and meet Department of Defense demands for innovative, cost-effective solutions.
L3Harris plans to leverage Aerojet Rocketdyne's century of expertise in propulsion systems and energetics to drive investment in advanced missile technologies, hypersonics, and space exploration.

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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.