BWXT to Acquire L3Harris’ A.O.T. Business to Expand Special Materials Portfolio
BWX Technologies (BWXT) has signed an agreement to acquire L3Harris' Aerojet Ordnance Tennessee (A.O.T.) business for approximately $100 million. A.O.T., which generated revenue of about $40 million in the trailing twelve months, is the sole provider of depleted uranium to the U.S. government and manufactures specialized materials including tungsten, molybdenum, and various alloys. The acquisition is expected to close by year-end and become slightly accretive to BWXT's earnings within 12-18 months, excluding purchase accounting and one-time costs. The business will operate within BWXT's government operations segment.
BWX Technologies (BWXT) ha firmato un accordo per acquisire il business di L3Harris' Aerojet Ordnance Tennessee (A.O.T.) per circa 100 milioni di dollari. A.O.T., che ha generato un fatturato di circa 40 milioni di dollari negli ultimi dodici mesi, è l'unico fornitore di uranio impoverito per il governo degli Stati Uniti e produce materiali specializzati tra cui tungsteno, molibdeno e varie leghe. L'acquisizione dovrebbe chiudersi entro la fine dell'anno e apportare un leggero incremento agli utili di BWXT entro 12-18 mesi, escludendo la contabilità d'acquisto e i costi una tantum. Il business opererà all'interno del segmento delle operazioni governative di BWXT.
BWX Technologies (BWXT) ha firmado un acuerdo para adquirir el negocio de L3Harris' Aerojet Ordnance Tennessee (A.O.T.) por aproximadamente 100 millones de dólares. A.O.T., que generó ingresos de alrededor de 40 millones de dólares en los últimos doce meses, es el único proveedor de uranio empobrecido para el gobierno de EE.UU. y fabrica materiales especializados, incluyendo tungsteno, molibdeno y varias aleaciones. Se espera que la adquisición se cierre a finales de año y que aporte un leve incremento a las ganancias de BWXT dentro de 12-18 meses, excluyendo la contabilidad de compra y costos únicos. El negocio operará dentro del segmento de operaciones gubernamentales de BWXT.
BWX Technologies (BWXT)는 약 1억 달러에 L3Harris' Aerojet Ordnance Tennessee (A.O.T.) 사업 부문을 인수하기 위한 계약을 체결했습니다. A.O.T.는 지난 12개월 동안 약 4천만 달러의 수익을 올렸으며, 미국 정부에 우라늄이 고갈된 유일한 공급업체로, 텅스텐, 몰리브덴 및 다양한 합금과 같은 특수 재료를 제조합니다. 이번 인수는 연말까지 마무리될 것으로 예상되며, 12~18개월 이내에 BWXT의 수익에 약간의 증가를 가져올 것으로 보입니다. (구매 회계 및 일회성 비용 제외) 이 사업은 BWXT의 정부 운영 부문 내에서 운영됩니다.
BWX Technologies (BWXT) a signé un accord pour acquérir l'activité de L3Harris' Aerojet Ordnance Tennessee (A.O.T.) pour environ 100 millions de dollars. A.O.T., qui a généré des revenus d'environ 40 millions de dollars au cours des douze derniers mois, est le seul fournisseur d'uranium appauvri pour le gouvernement américain et fabrique des matériaux spécialisés, y compris le tungstène, le molybdène et divers alliages. L'acquisition devrait être finalisée d'ici la fin de l'année et contribuer légèrement aux bénéfices de BWXT d'ici 12 à 18 mois, à l'exclusion de la comptabilité d'achat et des coûts uniques. L'activité sera intégrée au segment des opérations gouvernementales de BWXT.
BWX Technologies (BWXT) hat eine Vereinbarung zur Übernahme des Geschäfts von L3Harris' Aerojet Ordnance Tennessee (A.O.T.) für etwa 100 Millionen Dollar unterzeichnet. A.O.T., das im vergangenen Jahr etwa 40 Millionen Dollar Umsatz erwirtschaftete, ist der einzige Anbieter von abgereichertem Uran für die US-Regierung und stellt spezialisierte Materialien wie Wolfram, Molybdän und verschiedene Legierungen her. Der Abschluss der Übernahme wird bis Ende des Jahres erwartet und soll innerhalb von 12-18 Monaten geringfügig positiv zu BWXTs Erträgen beitragen, ohne die Kaufbilanzierung und einmalige Kosten zu berücksichtigen. Das Geschäft wird innerhalb des Regierungssegment von BWXT betrieben.
- Acquisition provides BWXT exclusive position as sole depleted uranium provider to U.S. government
- Deal expected to be earnings accretive within 12-18 months
- Expands BWXT's specialty materials portfolio and technical capabilities
- Adds $40 million in trailing twelve-month revenue
- Purchase accounting and one-time costs will impact initial earnings
- Deal completion subject to regulatory approvals and closing conditions
Insights
This
The deal structure appears favorable, with expected earnings accretion within 12-18 months post-closing. For BWXT, with its
This acquisition significantly strengthens BWXT's position in the defense materials supply chain, particularly through A.O.T.'s exclusive depleted uranium contract with the U.S. government. The strategic importance of this capability cannot be overstated, as it involves critical materials for military applications. The diverse portfolio of specialized metals and composites, including tungsten, molybdenum and reactive materials, positions BWXT to capture growing demand in advanced defense systems and space applications.
For L3Harris, this divestiture aligns with their portfolio optimization strategy, allowing them to focus on core competencies while monetizing a non-core asset. The transaction reinforces the ongoing consolidation trend in the defense industrial base, particularly in specialized materials and manufacturing capabilities essential for national security.
A.O.T. is a leading provider of advanced specialty materials, fabrication and high-strength alloy manufacturing, including depleted uranium engineered products. A.O.T. will further enhance BWXT’s capabilities to develop and manufacture advanced materials and products for commercial, military and space applications.
“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.”
“This transaction reflects L3Harris’ multi-year strategy to optimize our portfolio and deliver on our commitments to customers and shareholders,” said Ken Bedingfield, chief financial officer, L3Harris.
L3Harris’ A.O.T. business has generated revenue of approximately
The transaction is subject to required approvals and clearances and other customary closing conditions.
Forward-Looking Statements
BWXT cautions that this release contains forward-looking statements, including, without limitation, statements relating to management’s plans and expectations for the acquisition of A.O.T., our ability to realize the anticipated benefits, future revenues and demand for A.O.T. business, and A.O.T. continuing operations. These forward-looking statements are based on management’s current expectations and involve a number of risks and uncertainties, including, among other things, our ability to integrate A.O.T. into the Company, obtain any necessary regulatory and other approvals, and competition in the market for A.O.T. products. If one or more of these risks or other risks materialize, actual results may vary materially from those expressed. For a more complete discussion of these and other risk factors, please see BWXT’s annual report on Form 10-K for the year ended December 31, 2023 and subsequent reports on Form 10-Q filed with the Securities and Exchange Commission. BWXT cautions not to place undue reliance on these forward-looking statements, which speak only as of the date of this release, and undertakes no obligation to update or revise any forward-looking statement, except to the extent required by applicable law.
About BWXT
At BWX Technologies, Inc. (NYSE: BWXT), we are People Strong, Innovation Driven. A
About L3Harris Technologies
L3Harris Technologies is the Trusted Disruptor in the defense industry. With customers’ mission-critical needs always in mind, our employees deliver end-to-end technology solutions connecting the space, air, land, sea and cyber domains in the interest of national security. Visit L3Harris.com for more information.
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Media Contacts
Suzy Sterner
SVP & Chief Corporate Affairs Officer
202-428-6905
ssterner@bwxt.com
Sara Banda
Director, L3Harris Media Relations
321-306-8927
media@l3harris.com
Investor Contacts
Chase Jacobson
Vice President, Investor Relations
980-365-4300
investors@bwxt.com
Dan Gittsovich
Vice President, L3Harris Investor Relations
321-724-3170
InvestorRelations@L3Harris.com
Source: BWX Technologies, Inc.
FAQ
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