L3Harris Technologies to buy aerospace and defense firm Aerojet Rocketdyne

L3Harris Technologies has agreed to acquire rival aerospace and defense firm Aerojet Rocketdyne, a subsidiary of Aerojet Rocketdyne Holdings, in an all-cash transaction valued at $4.7 billion, including the assumption of net debt.

Through its second acquisition announcement of 2022, L3Harris Technologies anticipates further improving its delivery of critical capabilities to warfighters and supporting the US defense industrial base.

In addition, the acquisition of Aerojet Rocketdyne is expected to address both current and emerging threats as well as encourage scientific discovery and innovation through investments in advanced missile technologies and hypersonics.

Christopher E Kubasik — L3Harris Technologies CEO and Chair said: “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.

“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.”

L3Harris Technologies to acquire aerospace and defense firm Aerojet Rocketdyne. Photo courtesy of Aerojet Rocketdyne Artist Concept.

Aerojet Rocketdyne delivers propulsion systems and energetics to the space, missile defense and strategic systems, and tactical systems areas, in support of the US Department of Defense (DoD), NASA, and other partners and allies globally.

With investments in rocket propulsion, Aerojet Rocketdyne is said to support America’s warfighters and enhance integrated deterrence.

Eileen P Drake —  Aerojet Rocketdyne CEO and President said: “This agreement will accelerate innovation for national security propulsion solutions…

“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.

“This is an exciting new chapter for Aerojet Rocketdyne and our over 5,200 dedicated team members, providing them with additional opportunities, and we look forward to working closely with L3Harris to complete this transaction.”

The annual revenue of Aerojet Rocketdyne is around $2.3 billion.

Anticipated to complete in 2023, the transaction is subject to regulatory approvals and other customary closing conditions.