Unique-Common Electrical, L3Harris amongst suitors vying for Aerojet -sources By Reuters

By Mike Stone and David Carnevali

(Reuters) – Industrial conglomerate Common Electrical (NYSE:) Co and protection contractor L3Harris Applied sciences (NYSE:) Inc are amongst these competing to accumulate rocket maker Aerojet Rocketdyne Holdings (NYSE:) Inc, based on folks aware of the matter.

Plane producer Textron Inc (NYSE:) and personal fairness agency Veritas Capital are additionally vying to accumulate El Segundo, California-based Aerojet, which has a market worth of about $4 billion, the sources mentioned.

Aerojet has been operating a course of to promote itself after its $4.4 billion sale to Lockheed Martin Corp (NYSE:) was thwarted by antitrust regulators in February, Reuters has beforehand reported. If the negotiations conclude efficiently, a deal may very well be inked by the top of December, the sources added, cautioning that no settlement was sure.

Aerojet doesn’t see within the line-up of bidders the antitrust points that led to the demise of its take care of Lockheed, as a result of not one of the suitors are direct rivals or share a lot of the identical provide chain, one of many sources mentioned.

The sources requested anonymity as a result of the matter is confidential.

“We often assess a number of choices as we pursue game-changing options for our clients,” an L3 Harris spokesperson mentioned, declining to remark particularly on the corporate’s pursuit of Aerojet. Spokespeople for Aerojet, Common Electrical, Textron and Veritas Capital didn’t reply to requests for remark.

Aerojet develops and manufactures liquid and strong rocket propulsion and hypersonic engines for area, protection, civil and business purposes. Its clients embody the Pentagon, Boeing (NYSE:), Lockheed Martin and Raytheon Applied sciences (NYSE:) Corp.

The corporate prevailed in a battle for management of its board in opposition to former Govt Chairman Warren Lichtenstein final summer season however stays below stress to spice up its efficiency. Activist hedge fund Elliott Funding Administration disclosed it had collected a 3.7% stake in Aerojet in August.