M&A · Industrials · Guided Missiles & Space Vehicles & Parts
L3HARRIS Technologies, Inc. to acquire Aerojet Rocketdyne Holdings, Inc.
Announced Dec 18, 2022 · Closed Jul 28, 2023
Deal value$4.70BEV $4.60B
Premium37.0%To unaffected price
EV / Adj. EBITDA17.6x2.1x EV / Revenue
ConsiderationAll cash$58.00 per share
Transaction
- Acquirer
- L3HARRIS Technologies, Inc. (LHX)
- Target
- Aerojet Rocketdyne Holdings, Inc. (AJRD)
- Buyer type
- Strategic
- Offer price per share
- $58.00
- Enterprise value
- $4.60B
- Status
- Closed Jul 28, 2023
Deal protections
- Break fee (target pays)
- $95.6M · 2.0%
- Reverse fee (buyer pays)
- $406M · 8.6%
- Go-shop
- No-shop
- Financing
- —
Advisors
- To the acquirer
- Barclays, Goldman Sachs
- To the target
- Citigroup, Evercore
- Citigroup fee
- $0.3M
- Evercore fee
- $35.8M
Sector context · Industrials
- Comparable deals
- 81 in the prior 24 months
- Premium
- 37.0% vs. 47.6% sector median
- EV / Adj. EBITDA
- 17.6x vs. 11.2x sector median
- Break fee
- 2.0% vs. 2.8% sector median
Timeline
- AnnouncedDec 18, 2022
- Proxy filedJan 30, 2023
- Definitive proxyFeb 13, 2023
- Shareholder voteMar 16, 2023
- ClosedJul 28, 2023
Valuation · fairness opinions
Discounted cash flowCitigroup$48.50$60.25
Future share priceCitigroup$43.25$58.75
Trading comparablesCitigroup$39.50$60.25
Precedent transactionsCitigroup$44.00$61.50
Precedent transactionsCitigroup$35.47$56.00
Discounted cash flowEvercore$51.00$65.50
Trading comparablesEvercore$44.50$53.50
Precedent transactionsEvercore$47.75$58.50
Precedent transactionsEvercore$51.00$62.50
Leveraged buyoutEvercore$45.50$52.00
Offer $58.00
Implied value per Aerojet Rocketdyne Holdings, Inc. share by analysis, from Citigroup and Evercore · DCF discount rate 9.2%–10.1%.