Aerojet Rocketdyne [AJRD] on Wednesday said it has agreed to acquire Coleman Aerospace from L3 Technologies [LLL] for $15 million in cash, in a deal that will add the design and production of target ballistic missiles to its portfolio.
Coleman is expected to have $40 million in sales this year. The unit has about 150 employees.
Coleman is based in Florida and develops and integrates air and ground-launched ballistic missile targets and mission planning for the Missile Defense Agency, and hypersonic testing for the Air Force Research Laboratory. The business is both a prime contractor and subcontractor offering suborbital launch vehicles, payloads, and launch services.
“The addition of Coleman’s vehicle integration expertise supports our growth strategy for offering an expanded range of products and services to the defense and space markets,” Eileen Drake, president and CEO of Aerojet Rocketdyne, said in a statement. “This deal represents a sound investment in both advanced technologies and new capabilities that build upon our decades of experience as the nation’s leading propulsion provider.”
Aerojet Rocketdyne said that Coleman will assume the new Space Coast Integration & Test facility lease at Cape Canaveral Air Force Station in Florida. The business unit will be renamed Aerojet Rocketdyne Coleman Aerospace and operated as a subsidiary of Aerojet Rocketdyne.
L3 has been reshaping its portfolio through a series of acquisitions and divestitures the past 18 months or so.
L3’s financial advisor on the deal was Seabury Securities.The acquisition is expected to close in February.