BWX Technologies and L3Harris Technologies announced the signing of a purchase agreement for BWXT to acquire L3Harris’ Aerojet Ordnance Tennessee, Inc. (A.O.T.) business for approximately $100 million.
A.O.T. is a provider of advanced specialty materials, fabrication and high-strength alloy manufacturing, including depleted uranium engineered materials. And A.O.T. will further enhance BWXT’s capabilities to develop and manufacture advanced materials and products for commercial, military and space applications.
L3Harris’ A.O.T. business generated about $40 million over the trailing twelve months. It is the sole provider of depleted uranium to the U.S. government. It produces other specialized materials, including tungsten, molybdenum, tantalum, rhenium, titanium, nickel, aluminum, copper, metal-matrix composites, metal-polymer composites, reactive materials, and custom alloys. And the acquisition is targeted to close by year-end and is expected to be slightly accretive to BWXT’s earnings, excluding purchase accounting and other one-time costs within 12-18 months. The acquired business will operate within BWXT’s government operations segment.
The deal is subject to required approvals and clearances and other customary closing conditions.
KEY QUOTES:
“With decades of experience in specialized materials and metallurgy, A.O.T. brings exciting resources and expertise to BWXT. This acquisition marks a significant step in our growth strategy, allowing us to leverage A.O.T.’s unique competencies and assets to better serve our customers. The combination of technical expertise and talent at this dynamic organization makes us confident that this acquisition will create greater opportunities for our company and will further enhance our value to BWXT’s customers.”
- Rex Geveden, president and chief executive officer of BWXT
“This transaction reflects L3Harris’ multi-year strategy to optimize our portfolio and deliver on our commitments to customers and shareholders.”
- Ken Bedingfield, chief financial officer, L3Harris
