Aerospace and defense technology company L3Harris Technologies has outlined a definitive agreement to acquire Aerojet Rocketdyne for $58 per share – in an all-cash transaction valued at $4.7 billion.
The transaction is inclusive of net debt and demonstrates L3Harris Technologies’ focus on delivering critical capabilities to combat personnel while strengthening the nation’s defense industrial base via increased competition.
“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,” L3Harris CEO and Chair Christopher E. Kubasik said. “With this acquisition, we will use the combined talents of more than 50,000 employees to drive continuous process improvement, enhance business operations and elevate the performance of this crucial national asset.”
The cash acquisition will be funded with existing cash and the issuance of new debt. The transaction is expected to close in 2023, subject to required regulatory approvals, clearances, and other customary closing conditions.
“This agreement will accelerate innovation for national security propulsion solutions while providing a premium cash value for our shareholders, and tremendous benefits for our employees, customers, partners, and the communities in which we operate,” Aerojet Rocketdyne CEO and President Eileen P. Drake said. “Joining L3Harris is a testament to the world-class organization and team we’ve built and represents a natural next phase of our evolution. As part of L3Harris, we will bring our advanced technologies together with their substantial expertise and resources to accelerate our shared purpose: enabling the defense of our nation and space exploration.”