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L3Harris (NYSE:LHX) confirmed it agreed to purchase rocket maker Aerojet Rocketdyne (NYSE:AJRD) for $4.7 billion in all-cash deal, including debt.
L3Harris (LHX) agreed to pay $58 a share for Aerojet Rocketdyne (AJRD), according to a statement on Sunday. 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.
The deal confirmation comes after Reuters reported Saturday that L3Harris (LHX) outbid General Electric (GE) in a sales process for the rocket maker.
The cash acquisition will be funded with existing cash and the issuance of new debt. The deal is expected to close in 2023, subject to required regulatory approvals and clearances and other customary closing conditions.
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.