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.
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