Reply To: Traders Market Weekly: Embrace the Chaos in 2023

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Truman
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L3Harris close to deal to buy Aerojet Rocketdyne for $4.7B

L3Harris Technologies Inc. (NYSE:LHX) is close to agreeing to a deal to buy rocket maker Aerojet Rocketdyne (NYSE:AJRD) for $4.7 billion.

L3Harris (LHX) outbid General Electric (GE) in a sales process for Aerojet, agreeing to pay $58 a share, according to a Reuters report on Saturday, which cited people familiar. An agreement may be announced a soon as Monday. The deal represents a 5.7% premium to Aerojet’s (AJRD) Friday closing price and a 36% premium to when Dealrepoter first discussed talks with strategic buyers on Aug. 23.

Dealreporter said earlier this month that defense contractor L3Harris (LHX) was among the potential suitors that was performing due diligence on Aerojet (AJRD). Aerojet (AJRD) makes engines for rockets such as NASA’s Space Launch System that will carry people back to the moon.

General Electric (GE), Veritas Capital and Textron (TXT) were also said to be interested in buying Aerojet, Reuters reporter last month.

A potential Aerojet (AJRD) sale comes after FTC filed a lawsuit in late January to block Lockheed Martin’s (LMT) $4.4 billion purchase of Aerojet (AJRD) due to antitrust concerns. Lockheed terminated the deal in February.