BWXT to acquire L3Harris’ A.O.T. business to expand special materials portfolio
BWX Technologies (BWXT) has agreed 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, expected to close by year-end, will enhance BWXT's capabilities in advanced materials manufacturing for commercial, military, and space applications. The deal is anticipated to be slightly accretive to BWXT's earnings within 12-18 months, excluding purchase accounting and one-time costs.
BWX Technologies (BWXT) ha concordato l'acquisizione del business Aerojet Ordnance Tennessee (A.O.T.) di L3Harris per circa 100 milioni di dollari. A.O.T., che ha generato ricavi 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 diverse leghe. Si prevede che l'acquisizione si chiuda entro la fine dell'anno e migliorerà le capacità di BWXT nella produzione di materiali avanzati per applicazioni commerciali, militari e spaziali. Si prevede che l'accordo avrà un leggero impatto positivo sugli utili di BWXT entro 12-18 mesi, escludendo la contabilità di acquisto e i costi una tantum.
BWX Technologies (BWXT) ha acordado adquirir el negocio Aerojet Ordnance Tennessee (A.O.T.) de L3Harris 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 que incluyen tungsteno, molibdeno y diversas aleaciones. Se espera que la adquisición se cierre a finales de año y mejorará las capacidades de BWXT en la fabricación de materiales avanzados para aplicaciones comerciales, militares y espaciales. Se anticipa que el acuerdo será ligeramente positivo para las ganancias de BWXT dentro de 12 a 18 meses, excluyendo la contabilidad de compra y los costos extraordinarios.
BWX 기술 (BWXT)는 L3Harris의 Aerojet Ordnance Tennessee (A.O.T.) 사업을 약 1억 달러에 인수하기로 합의했습니다. A.O.T.는 지난 12개월 동안 약 4000만 달러의 수익을 올린 기업으로, 미국 정부에 대한 우라늄 고갈의 유일한 공급자이며, 텅스텐, 몰리브덴 및 다양한 합금을 포함한 전문 소재를 생산합니다. 이번 인수는 연말까지 완료될 예정이며, BWXT의 상업용, 군사용 및 우주 응용 분야에서의 고급 소재 제조 능력을 향상시킬 것입니다. 거래는 구매 회계 및 일회성 비용을 제외하고 BWXT의 수익에 대해 12-18개월 내에 약간의 긍정적인 영향을 미칠 것으로 예상됩니다.
BWX Technologies (BWXT) a accepté d'acquérir le business Aerojet Ordnance Tennessee (A.O.T.) de L3Harris pour environ 100 millions de dollars. A.O.T., qui a généré un chiffre d'affaires 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, notamment du tungstène, du molybdène et divers alliages. L'acquisition, qui devrait être finalisée d'ici la fin de l'année, renforcera les capacités de BWXT dans la fabrication de matériaux avancés pour des applications commerciales, militaires et spatiales. L'opération devrait avoir un léger impact positif sur les bénéfices de BWXT dans les 12 à 18 mois, en excluant la comptabilité d'acquisition et les coûts ponctuels.
BWX Technologies (BWXT) hat sich darauf geeinigt, das Aerojet Ordnance Tennessee (A.O.T.) Geschäft von L3Harris für ungefähr 100 Millionen Dollar zu erwerben. A.O.T., das in den letzten zwölf Monaten etwa 40 Millionen Dollar Umsatz erzielt hat, ist der einzige Anbieter von abgereichertem Uran für die US-Regierung und stellt spezialisierte Materialien wie Wolfram, Molybdän und verschiedene Legierungen her. Der Erwerb, der bis Ende des Jahres abgeschlossen sein soll, wird die Fähigkeiten von BWXT in der Herstellung von fortschrittlichen Materialien für kommerzielle, militärische und Raumfahrtanwendungen verbessern. Es wird erwartet, dass der Deal innerhalb von 12-18 Monaten einen leichten positiven Effekt auf die Gewinne von BWXT haben wird, ohne die Buchhaltungskosten und einmalige Ausgaben.
- Acquisition provides BWXT exclusive position as sole depleted uranium provider to U.S. government
- Deal expected to be earnings accretive within 12-18 months
- Adds $40 million in annual revenue to BWXT
- Expands BWXT's advanced materials capabilities and product portfolio
- Purchase accounting and one-time costs may impact initial earnings
- Transaction subject to regulatory approvals and clearances
Insights
This
The deal valuation at 2.5x revenue appears reasonable given A.O.T.'s unique market position and specialized capabilities. For L3Harris, this sale aligns with their portfolio optimization strategy while being relatively immaterial to their overall revenue base (
Key value drivers include:
- Monopolistic market position in depleted uranium
- Diversified specialty materials portfolio
- Established government contracts
- Technical expertise and manufacturing capabilities
A.O.T. is a leading provider of advanced specialty materials, fabrication and high-strength alloy manufacturing, including depleted uranium engineered materials. 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.
View source version on businesswire.com: https://www.businesswire.com/news/home/20241104665047/en/
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: L3Harris Technologies, Inc.
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