Bulletin: BWX Technologies Inc.'s Agreement To Acquire L3Harris' AOT Segment Is Consistent With Growth Strategy; Metrics Unchanged

NEW YORK (S&P Global Ratings) Nov. 5, 2024--S&P Global Ratings today said that BWX Technologies Inc. (BB/Stable/--) announced agreement to acquire L3Harris Technologies Inc.'s Aerojet Ordnance Tennessee Inc. (A.O.T.) business is consistent with BWX's growth strategy, which includes periodic acquisitions of this scale. A.O.T. is the sole manufacturer of depleted uranium and other metals with defense applications. We believe the acquisition fits well with BWX's existing special materials portfolio, specifically complementing its Navy fuel business in East Tennessee. We expect the $100 million transaction to close by the end of 2024, subject to required approvals and clearances and other customary closing conditions. We anticipate the company will fund the purchase price primarily with its revolver, which does not impact its

...November 5, 2024 NEW YORK (S&P Global Ratings) Nov. 5, 2024--S&P Global Ratings today said that BWX Technologies Inc. (##/Stable/--) announced agreement to acquire L3Harris Technologies Inc.'s Aerojet Ordnance Tennessee Inc. (A.O.T.) business is consistent with BWX's growth strategy, which includes periodic acquisitions of this scale. A.O.T. is the sole manufacturer of depleted uranium and other metals with defense applications. We believe the acquisition fits well with BWX's existing special materials portfolio, specifically complementing its Navy fuel business in East Tennessee. We expect the $100 million transaction to close by the end of 2024, subject to required approvals and clearances and other customary closing conditions. We anticipate the company will fund the purchase price primarily with its revolver, which does not impact its credit measures relative to our forecast. We expect free operating cash flow (FOCF) to debt to be 16%-19%, funds from operations (FFO) to debt to be 24%-29%,...

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