L3Harris Technologies has signed a definitive agreement to acquire El Segundo-based Aerojet Rocketdyne Holdings Inc. in an all-cash transaction valued at $4.7 billion.
The acquisition announcement is Florida-based L3Harris’ second of the year and comes nearly one year after Lockheed Martin failed to acquire Aerojet after the Federal Trade Commission sued to block the deal. The commission argued Lockheed’s potential acquisition of Aerojet would eliminate the last independent supplier of missile propulsion inputs, giving Lockheed the ability to cut competitors’ access to such inputs.
Aerojet Rocketdyne, a subsidiary of Aerojet Rocketdyne Holdings Inc., has a Chatsworth facility with about 1,200 employees.
Aerojet generates approximately $2.3 billion in annual revenue and has manufacturing operations in multiple states.
“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,” Christopher E. Kubasik, L3Harris’ chief executive and chair, said in a statement. “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 deal is expected to close next year and will be funded with L3Harris’ existing cash and the issuance of new debt. The company has more than $17 billion in annual revenue and customers in more than 100 countries.
“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,” Aerojet Chief Executive Eileen P. Drake said in a statement. “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.”