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#The Wall Street Journal: L3Harris plans to buy rival defense contractor Aerojet for $4.7 billion

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“The Wall Street Journal: L3Harris plans to buy rival defense contractor Aerojet for $4.7 billion”

Defense firm L3Harris Technologies Inc. on Sunday said it agreed to buy Aerojet Rocketdyne Holdings Inc. in a $4.7 billion deal that would cement L3Harris’s role as one of six prime defense contractors for the Pentagon.

Aerojet
AJRD,
+0.79%
is a major maker of engines used in missiles, such as the Javelin deployed in Ukraine. Its products also help power National Aeronautics and Space Administration rockets and U.S. military hypersonic systems designed to deter China’s military expansion.

Aerojet was put back up for sale after federal regulators in January sued to block its planned $4.4 billion purchase by Lockheed Martin Corp.
LMT,

+0.63%

on antitrust grounds, sparking a bitter internal board battle.

L3Harris’s
LHX,
-1.48%
all-cash bid of $58 a share won out over competing offers from General Electric Co.
GE,
-1.47%
and Textron Inc.
TXT,
+0.39%,
according to people involved in the negotiations. A deal is expected to face intense regulatory scrutiny at a time when Aerojet has also wrestled with production problems.

An expanded version of this report appears on WSJ.com.

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