BWX to acquire L3Harris’ AOT business for about $100M

BWX Technologies (BWXT) and L3Harris (LHX) announced the signing of a purchase agreement for BWXT to acquire L3Harris’ Aerojet Ordnance Tennessee, Inc. business for approximately $100 million. “With decades of experience in specialized materials and metallurgy, A.O.T. brings exciting resources and expertise to BWXT,” said Rex Geveden, president and chief executive officer of 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.” L3Harris’ A.O.T. business has generated revenue of approximately $40 million over the trailing-twelve-month period. It is the sole provider of depleted uranium to the U.S. government and produces other specialized materials, including tungsten, molybdenum, tantalum, rhenium, titanium, nickel, aluminum, copper, metal-matrix composites, metal polymer composites, reactive materials and custom alloys. 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 transaction is subject to required approvals and clearances and other customary closing conditions.