L3Harris Technologies and Aerojet Rocketdyne Holdings Inc. have announced the signing of a definitive agreement for L3Harris to acquire Aerojet Rocketdyne in an all-cash transaction valued at $4.7 billion.
Aerojet Rocketdyne, headquartered in El Segundo, California, operates an advanced manufacturing facility in Camden.
The $4.7 billion is inclusive of net debt, and the acquisition will be funded with existing cash and the issuance of new debt, the publicly traded companies said.
The deal is expected to close in 2023, subject to required regulatory approvals and clearances and other customary closing conditions.
This marks L3Harris' second acquisition announcement of 2022. That company is headquartered in Melbourne, Florida.
"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," said L3Harris Chief Executive Officer and Chair Christopher E. Kubasik.
"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," he said.
Aerojet Rocketdyne is a provider of propulsion systems and energetics to the DoD, NASA and other partners and allies worldwide.
"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," said Eileen P. Drake, CEO and president of Aerojet Rocketdyne.
"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," she said. "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."
Aerojet Rocketdyne currently generates approximately $2.3 billion in annual revenue. The company has advanced manufacturing facilities in nine states, including Arkansas.