L3Harris to buy Aerojet Rocketdyne for $4.7 billion.
The space and defense contractor L3Harris Technologies has announced a deal to buy Aerojet Rocketdyne for $4.7 billion.
L3Harris is buying Aerojet at $58 per share in an all-cash transaction. Aerojet shares traded at $54.89 on Dec. 16. The deal is expected to close in 2023, pending regulatory approvals.
Aerojet Rocketdyne, based in Sacramento, California, manufactures rocket engines and propulsion systems for space vehicles, ballistic missiles and military tactical weapons. The company generates approximately $2.3 billion in annual revenue. L3Harris, headquartered in Melbourne, Florida, is a global defense and aerospace firm with $17 billion in annual revenue.
This deal could in the end save Aerojet, which in recent years has had problems both making and selling its rocket engines, while facing increasing competition from many new rocket engine startups. As an old space company, its engines have tended to be too expensive, and often produced behind schedule. L3Harris now has the opportunity to clean house and streamline operations there, thus making the engines it produces more competitive in the emerging new space market.
The space and defense contractor L3Harris Technologies has announced a deal to buy Aerojet Rocketdyne for $4.7 billion.
L3Harris is buying Aerojet at $58 per share in an all-cash transaction. Aerojet shares traded at $54.89 on Dec. 16. The deal is expected to close in 2023, pending regulatory approvals.
Aerojet Rocketdyne, based in Sacramento, California, manufactures rocket engines and propulsion systems for space vehicles, ballistic missiles and military tactical weapons. The company generates approximately $2.3 billion in annual revenue. L3Harris, headquartered in Melbourne, Florida, is a global defense and aerospace firm with $17 billion in annual revenue.
This deal could in the end save Aerojet, which in recent years has had problems both making and selling its rocket engines, while facing increasing competition from many new rocket engine startups. As an old space company, its engines have tended to be too expensive, and often produced behind schedule. L3Harris now has the opportunity to clean house and streamline operations there, thus making the engines it produces more competitive in the emerging new space market.