Will L3Harris Repeat Lockheed Martin's Mistake?
At long last, Aerojet Rocketdyne's (NYSE: AJRD) two-year-long attempt to sell itself may be drawing to a close. Last week, defense company L3Harris Technologies (NYSE: LHX) announced it will buy Aerojet and take the rocket-maker in-house. And the most amazing part of the news is this:
L3 is going to pay more to acquire Aerojet than Lockheed Martin (NYSE: LMT) wanted to pay early last year.
Let's rewind a bit. Early in 2021, Lockheed Martin -- the world's biggest defense company -- announced its plans to get even bigger by buying Aerojet, which manufactures rocket engines for everything from spaceships to cruise missiles. In doing so, Lockheed would add new revenue streams to its defense business (which earns 10.5% operating profit margins, according to S&P Global Market Intelligence) and also give Lockheed a leg up in space (profit margin: 9.3%).
Source Fool.com
