Military uniform L3 Harris to buy rocket manufacturer Aerojet for almost $ 5 billion
2022.12.19 13:26
Military uniform L3 Harris to buy rocket manufacturer Aerojet for almost $ 5 billion
Budrigannews.com – L3Harris Technologies, an American defense contractor (NYSE:) On Sunday, Inc. announced that it would acquire Aerojet Rocketdyne Holdings (NYSE:). In an effort to capitalize on the rising demand for missiles amid the conflict in Ukraine, Inc. completed a $4.7 billion all-cash transaction.
On Saturday, Reuters first reported that L3Harris was nearing a deal to acquire Aerojet, a manufacturer of rockets in the United States.
The offer price of $58 per share is 6.5% higher than Aerojet’s closing price on Friday.
L3Harris’ Space & Airborne Systems division, which produces electronic warfare equipment and avionics sensors, would gain from the acquisition, which is anticipated to be completed in 2023.
Aerojet put itself up for sale after antitrust regulators blocked a merger with Lockheed Martin Corp. (NYSE:) L3Harris, which was formed by the merger of L3 Technologies and Harris Corp. in 2019, was one of the companies vying to buy Aerojet, according to Reuters last month. in the past year.
The demand for missiles has increased as allies seek to strengthen their defenses as a result of the billions of dollars in military aid provided by the United States to Ukraine, which includes air defense systems and missiles.
Aerojet creates and makes fluid and strong rocket impetus and hypersonic motors for space, safeguard, common and business applications.
The National Aeronautics and Space Administration (NASA), which is one of Aerojet’s main customers and is pursuing moon and deep space missions with renewed vigor, has also given the market for rockets a boost.
Aerojet is the manufacturer of the RS-25 engines used in NASA’s launch vehicles and the RL10 engines used in United Launch Alliance’s (NYSE:) launch vehicles. Lockheed Martin and Co.
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L3Harris, which has been investing in the cyber and space sectors, wants to establish itself as one of the most important contractors for the Pentagon and join the top aerospace and defense companies.
