🥇 First rule of investing? Know when to save! Up to 55% off InvestingPro before BLACK FRIDAYCLAIM SALE

Exclusive-General Electric, L3Harris among suitors vying for Aerojet -sources

Published 11/30/2022, 12:01 PM
Updated 11/30/2022, 01:00 PM
© Reuters. FILE PHOTO: A woman stands in front of a General Electric (GE) sign during World Artificial Intelligence Conference, following the coronavirus disease (COVID-19) outbreak, in Shanghai, China, September 1, 2022. REUTERS/Aly Song
BA
-
LMT
-
GE
-
RTX
-
TXT
-
LHX
-
AJRD
-

By Mike Stone and David Carnevali

(Reuters) - Industrial conglomerate General Electric (NYSE:GE) Co and defense contractor L3Harris Technologies (NYSE:LHX) Inc are among those competing to acquire rocket maker Aerojet Rocketdyne Holdings (NYSE:AJRD) Inc, according to people familiar with the matter.

Aircraft producer Textron Inc (NYSE:TXT) and private equity firm Veritas Capital are also vying to acquire El Segundo, California-based Aerojet, which has a market value of about $4 billion, the sources said.

Aerojet has been running a process to sell itself after its $4.4 billion sale to Lockheed Martin Corp (NYSE:LMT) was thwarted by antitrust regulators in February, Reuters has previously reported. If the negotiations conclude successfully, a deal could be inked by the end of December, the sources added, cautioning that no agreement was certain.

Aerojet does not see in the line-up of bidders the antitrust issues that led to the demise of its deal with Lockheed, because none of the suitors are direct competitors or share much of the same supply chain, one of the sources said.

The sources requested anonymity because the matter is confidential.

"We regularly assess multiple options as we pursue game-changing solutions for our customers," an L3 Harris spokesperson said, declining to comment specifically on the company's pursuit of Aerojet. Spokespeople for Aerojet, General Electric, Textron and Veritas Capital did not respond to requests for comment.

© Reuters. FILE PHOTO: A woman stands in front of a General Electric (GE) sign during World Artificial Intelligence Conference, following the coronavirus disease (COVID-19) outbreak, in Shanghai, China, September 1, 2022. REUTERS/Aly Song

Aerojet develops and manufactures liquid and solid rocket propulsion and hypersonic engines for space, defense, civil and commercial applications. Its customers include the Pentagon, Boeing (NYSE:BA), Lockheed Martin and Raytheon Technologies (NYSE:RTX) Corp.

The company prevailed in a battle for control of its board against former Executive Chairman Warren Lichtenstein last summer but remains under pressure to boost its performance. Activist hedge fund Elliott Investment Management disclosed it had accumulated a 3.7% stake in Aerojet in August.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.