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L3Harris signs $4.7 billion deal to acquire Aerojet Rocketdyne

L3Harris signs $4.7 billion deal to acquire Aerojet Rocketdyne
L3Harris signs $4.7 billion deal to acquire Aerojet Rocketdyne

L3Harris Technologies, a renowned American aerospace and defense company, has reportedly inked a deal to acquire Aerojet Rocketdyne at $58 per share in a cash-only deal valued at $4.7 billion, which is inclusive of net debt.

Apparently, this is the second time that L3Harris has announced an acquisition deal this year, highlighting its continuous commitment to providing warfighters with crucial capabilities while bolstering the country's defense industrial base through increased competition.

According to Eileen P. Drake, President and CEO of Aerojet Rocketdyne, this deal will spur innovations in national defense propulsion solutions whilst delivering an upscale cash value for the shareholders with immense perks for the customers, employees, partners, and the communities it serves.

Drake further added that Aerojet will collaborate with L3Harris to achieve its shared goal of enabling both space exploration and national security by combining cutting-edge technologies with their considerable knowledge and resources. Drake also mentioned that this is an exciting chapter for Aerojet Rocketdyne and its approximately 5,200 dedicated employees, and the firm looks forward to working closely with L3Harris to finalize this transaction.

The present annual revenue of Aerojet Rocketdyne is about $2.3 billion. The majority of the firm's workforce is located at advanced production facilities, which are located in Camden, Arkansas; Canoga Park, California; Huntsville, Alabama; West Palm Beach and Orlando, Florida; and other places. The acquisition will guarantee that the defense industrial base and consumers will have a stronger merchant supplier to proficiently approach both emerging and current threats through targeted investments in cutting-edge missile technology solutions, hypersonics, and more. It will also promote scientific breakthroughs and innovations.

Available cash and the issue of additional debt will be used to pay for the all-cash acquisition. The transaction is anticipated to close in 2023, subject to the relevant regulatory clearances and approvals, as well as other standard closing conditions.

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