US technology company L3Harris has acquired rocket engine manufacturer Aerojet Rocketdyne for $4.7bn. The deal will close next year after regulatory approval.
Based in Sacramento, Aerojet Rocketdyne makes rocket engines and propulsion systems for spacecraft, ballistic missiles and military tactical weapons. The manufacturer has annual revenues of around $2.3 billion.
L3Harris is headquartered in Melbourne, Florida. The global defence and aerospace company has annual revenues of around $17bn. The acquisition of Aerojet Rocketdyne will allow L3Harris to expand its presence in civil space, strategic defence and precision weapons.
The defence company will leverage the talents of more than 50,000 employees to improve processes, improve business operations and boost productivity, said L3Harris chief Christopher Kubasik. The deal will accelerate propulsion innovation for national security, said Aerojet Rocketdyne CEO Eileen Drake.
Several companies, including General Electric, Textron, Lockheed Martin and others, were previously interested in acquiring Aerojet Rocketdyne. Two years earlier Lockheed Martin tried to buy the manufacturer for $4.4 billion, but the deal was blocked by antitrust authorities. The US Federal Trade Commission said buying Aerojet Rocketdyne would cut off other defence contractors from critical components needed to build missiles.
Through the takeover of Aerojet Rocketdyne, L3Harris continues to expand capabilities in the space and military sectors. In October, the company acquired Viasat's tactical data channels business for $1.96bn.
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