L3Harris Technologies Acquires Aerojet Rocketdyne For $4.7B

  • L3Harris Technologies Inc LHX has agreed to acquire Aerojet Rocketdyne Holdings Inc AJRD for $58 per share in an all-cash transaction valued at $4.7 billion, including debt.
  • The per-share value represents a premium of 6% from AJRD's closing price of $54.89 on Dec. 16, 2022.
  • The deal marks L3Harris' second acquisition announcement of 2022.
  • Aerojet Rocketdyne provides propulsion systems and energetics to the Department of Defense, NASA, and other partners and allies worldwide.
  • Aerojet generates approximately $2.3 billion in annual revenue.
  • "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.
  • L3Harris plans to fund the deal with existing cash and the issuance of new debt. The deal is expected to close in 2023.
  • L3Harris held $529 million in cash and equivalents as of Sept. 30, 2022.
  • Price Action: LHX shares closed lower by 1.48% to $213.27 on Friday.
  • Photo Via Company
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