Aerojet Rocketdyne was acquired for $4.7 billion in an all-cash transaction.
Details of the Acquisition
The acquisition of Aerojet Rocketdyne, a prominent US aerospace and defense leader, was completed by L3Harris, a global defense and aerospace firm. This significant transaction reinforced L3Harris's position within the sector.
Key Acquisition Figures
The deal's structure and financial specifics were straightforward, emphasizing an all-cash payment.
| Detail | Value |
|---|---|
| Total Acquisition Value | $4.7 billion (inclusive of net debt) |
| Price Per Share | $58 per share |
| Transaction Type | All Cash |
| Acquirer | L3Harris |
| Acquired Company | Aerojet Rocketdyne |
Strategic Importance
This acquisition represented a strategic move for L3Harris, aiming to integrate Aerojet Rocketdyne's advanced propulsion systems and energetics capabilities. Such mergers are common in the defense and aerospace industry, driven by the desire to:
- Expand product portfolios: Gaining access to new technologies and capabilities.
- Increase market share: Consolidating competitive positions.
- Achieve synergies: Reducing operational costs and enhancing efficiency.
- Strengthen supply chains: Bringing critical components in-house.
The $4.7 billion valuation reflects the importance of Aerojet Rocketdyne's contributions to national security and space exploration programs, particularly its expertise in rocket propulsion systems, which are vital for missiles, rockets, and spacecraft.
