Photo: Aerojet Rocketdyne

L3Harris closed on its acquisition of rocket propulsion supplier Aerojet Rocketdyne on Friday, after the Federal Trade Commission did not block the move.  

More than 5,000 employees from Aerojet Rocketdyne will join L3Harris, and former L3Harris CTO Ross Niebergall will serve as president of the Aerojet Rocketdyne segment. It will be known as Aerojet Rocketdyne, an L3Harris Technologies company. 

L3Harris announced its deal to acquire the company in December for $4.7 billion, nearly a year after a deal for Lockheed Martin to buy the company collapsed when it was blocked for anti-trust concerns. At the time, L3Harris said Aerojet Rocketdyne generates approximately $2.3 billion in annual revenue. 

“With national security at the forefront, we’re combining our resources and expertise with Aerojet Rocketdyne’s propulsion and energetics capabilities to ensure that the Department of Defense and civil space customers can address critical mission needs globally,” commented Christopher Kubasik, L3Harris chair and CEO. 

Aerojet Rocketdyne produces missile propulsion for defense contractors including Attitude Control Motors (ACM) for Lockheed Martin Patriot missile systems, space power systems including those for  NASA’s Mars Curiosity Rover and Mars Perseverance Rover, and rocket engines including the RL10 engine, that powers United Launch Alliance’s Atlas V, Delta IV Heavy and the Vulcan Centaur rocket. The company is under contract to deliver 116 engines for ULA’s Vulcan Centaur to support ULA’s launch contract from Amazon for the Kuiper constellation.

The deal closed a day after L3Harris released its second quarter 2023 financial results, reporting company-wide revenue up 13% over the same time period last year, with growth in all segments. Revenue was $4.7 billion, and net income was $349 million. 

Space and Airborne Systems revenue was up 9% over the same time last year to $1.7 billion. Within the segment, Space Systems and Intel & Cyber increased revenue and new program ramps and Mission Networks saw increase from program scope growth. 

The Communication Systems segment, which includes satellite radios, was up 30% compared to the same time last year to $1.3 billion. The segment saw $115 million increase in Broadband Communications, principally from the Tactical Data Links (TDL) acquisition from Viasat. 

L3Harris increased full-year revenue guidance, with increases in all segments. The company now expects revenue of $18 billion to $18.3 billion, up from prior guidance of $17.4 billion to $17.8 billion. 

Guidance did not include the impact from Aerojet Rocketdyne acquisition, and the company said on a Thursday call with investors that it will update guidance in Q3 for the impact of the acquisition.