US-based BWX Technologies and L3Harris Technologies have signed a purchase agreement for BWXT to acquire L3Harris’s Aerojet Ordnance Tennessee (AOT) business for approximately $100m.
AOT is a leading provider of advanced specialty materials, fabrication and high-strength alloy manufacturing, including depleted uranium engineered products. The acquisition will further enhance BWXT’s capabilities to develop and manufacture advanced materials and products for commercial, military and space applications.
BWXT President & CEO Rex Geveden said the acquisition “marks a significant step in our growth strategy, allowing us to leverage AOT’s unique competencies and assets to better serve our customers”. He added: “The combination of technical expertise and talent at this dynamic organisation makes us confident that this acquisition will create greater opportunities for our company and will further enhance our value to BWXT’s customers.”
L3Harris’s AOT business has generated revenue of approximately $40m over the previous 12 months. It is the sole provider of depleted uranium to the US government and produces other specialised materials, including tungsten, molybdenum, tantalum, rhenium, titanium, nickel, aluminium, copper, metal-matrix composites, metal polymer composites, reactive materials and custom alloys. The acquisition is expected to close by the end of the year and will operate within BWXT’s government operations segment.
BWXT’s primary business is providing nuclear fuel and components for the US military. It employs about 7,000 people. BWXT also has an Advanced Technologies division developing nuclear reactors and fuel for spacecraft.
“The nuclear industry is enjoying unprecedented customer and market interest with tangible investments in nuclear solutions by end-users across our key defence, commercial power, and medical markets,” said Geveden. “Looking into 2025, we expect modest organic growth in our Government Operations segment complemented by a slight contribution from the AOT acquisition.”
