On Monday, BWX Technologies announced a signed purchase agreement to acquire L3Harris Technologies' Aerojet Ordnance Tennessee (AOT) subsidiary for some $100 million. The unit manufactures specialty metal components for the aerospace, defense and commercial sectors. 

Specifically, AOT provides advanced materials, fabrication and high-strength alloy manufacturing, including depleted uranium-engineered materials. The deal will enhance BWXT's ability to develop and manufacture products for commercial, military, and space applications.

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The AOT business has generated some $40 million in revenue over the last 12 months. According to the company, the division is the only provider of depleted uranium to the U.S. government and produces other specialized materials, like tungsten, molybdenum, tantalum, rhenium, titanium, nickel, aluminum, copper, metal-matrix composites, metal polymer composites, reactive materials and custom alloys.

According to the company's website, AOT's advanced specialty metal capabilities include powder metallurgy, primary metal processing, metal casting, heat treatment, precision CNC machining and milling, forging and swaging. 

BWXT expects the acquisition to close by the end of the year. The company believes the deal will be slightly accretive to its earnings, excluding purchase accounting and other one-time costs, within 12 to 18 months. AOT will operate within BWXT's government operations segment.

In a statement, L3Harris CFO Ken Bedingfield said the transaction "reflects L3Harris' multi-year strategy to optimize our portfolio and deliver on our commitments to customers and shareholders." The company continues to reshape its portfolio and sell non-core assets to focus on its national security, tech-focused business.  

Most recently, L3Harris sold its antenna and test equipment business to a Kanders & Company business unit for $200 million. 

BWXT is based in Lynchburg, Virginia and has some 7,800 employees across 14 major operating sites in the U.S., Canada and the U.K. 

The transaction is subject to required approvals, clearances, and other customary closing conditions.

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