The Lynchburg-based nuclear services company BWX Technologies said this week that it has signed an agreement to purchase L3Harris’ Aerojet Ordnance Tennessee, Inc. business for $100 million.
Aerojet Ordnance Tennessee makes specialized metals, high-strength alloys and products that use depleted uranium, according to a joint news release from BWXT and L3Harris. The company is the sole provider of depleted uranium to the U.S. government.
When uranium is enriched for use in nuclear fuel and weapons, depleted uranium is created as a by-product. Because of its very high density, depleted uranium is used in armor-piercing bullets and missiles as well as tank armor.
Acquiring Aerojet Ordnance Tennessee will “enhance BWXT’s capabilities to develop and manufacture advanced materials and products for commercial, military and space applications,” BWXT and L3Harris said in the news release.
“With decades of experience in specialized materials and metallurgy, A.O.T. brings exciting resources and expertise to BWXT,” Rex Geveden, president and CEO of BWXT, said in the release.
BWXT’s primary business is providing nuclear fuel and components for the U.S. military. It employs about 7,000 people, including about 2,800 in the Lynchburg area, most of whom work at the company’s Mt. Athos complex in Campbell County.
BWXT also has an Advanced Technologies division developing nuclear reactors and fuel for spacecraft.
L3Harris’ Aerojet Ordnance Tennessee business generated $40 million in revenue over the past 12 months, the companies said.
Melbourne, Florida-based L3Harris is a defense contractor and information technology services provider. Company CFO Ken Bedingfield said in the news release that the sale of Aerojet Ordnance Tennessee to BWXT “reflects L3Harris’ multi-year strategy to optimize our portfolio and deliver on our commitments to customers and shareholders.”
The deal is expected to close by the end of the year, pending required approvals and clearances. Once acquired, Aerojet Ordnance Tennessee will be part of BWXT’s government operations division.
The announcement came on the same day that BWX Technologies (NYSE:BWXT) reported a third-quarter profit of $69.6 million, or 76 cents per share.
