BWXT to acquire L3Harris’ A.O.T. business to expand special materials portfolio
05 November 2024 - 8:08AM
Business Wire
BWX Technologies, Inc. (NYSE: BWXT) and L3Harris Technologies,
Inc. (NYSE: LHX) today announced the signing of a purchase
agreement for BWXT to acquire L3Harris’ Aerojet Ordnance Tennessee,
Inc. (A.O.T.) business for approximately $100 million.
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
$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.
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 U.S.-based company, BWXT is a Fortune 1000 and
Defense News Top 100 manufacturing and engineering innovator that
provides safe and effective nuclear solutions for global security,
clean energy, environmental restoration, nuclear medicine and space
exploration. With approximately 7,800 employees, BWXT has 14 major
operating sites in the U.S., Canada and the U.K. In addition, BWXT
joint ventures provide management and operations at a dozen U.S.
Department of Energy and NASA facilities. For more information,
visit www.bwxt.com. Follow us on LinkedIn, X, Facebook and
Instagram.
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
BWX Technologies (NYSE:BWXT)
Historical Stock Chart
From Oct 2024 to Nov 2024
BWX Technologies (NYSE:BWXT)
Historical Stock Chart
From Nov 2023 to Nov 2024