Major defense industry merger affects Warren site
L3 Technologies, a New Yorkbased aerospace and defense contractor with a Warren County presence, and Florida-based Harris Corporation have agreed to combine in what could be the largest ever defense-industry merger.
The all-stock deal is valued at approximately $33.5 billion and, if approved, the combined company — L3 Harris Technologies Inc. — would be the nation’s sixth-largest defense contractor and a top 10 defense company globally.
Annual sales would be approximately $16 billion and the company would have 48,000 employees in more than 100 countries.
L3 Technologies, which employs about 31,000 people worldwide, is a provider global ISR, communications and electronic systems used on homeland security, military and commercial platforms.
It develops advanced defense technologies and commercial solutions in pilot training, aviation security, night vision, weapons, maritime systems and space.
L3 received approval July 30 from the Ohio Tax Credit Authority for tax credits that would allow it to create 245 full-time jobs at its 40-acre Mason campus, generating $21 million in new annual payroll and retaining $62.4 million in existing payroll.
The company has 775 employees at that site, L3 spokeswoman Jennifer Barton told this news outlet Wednesday.
Barton said she could not speculate on what effect the merger would have on the size of staffing or facilities there.
Harris Corp. supports commer-
cial and government customers in more than 100 countries and has approximately $6 billion in annual revenue. It is organized into three business segments: communication systems, electronic systems, and space and intelligence systems.
The merger creates greater benefits and growth opportunities than either company could have achieved alone, according to Christopher Kubasik, L3 chairman, president and CEO.
“The companies were on similar growth trajectories and this combination accelerates the journey to becoming a more agile, integrated and innovative non-traditional (defense contractor) focused on investing in important, next generation technologies,” Kubasik said. “L3 Harris Technologies will possess a wealth of technologies and a talented and engaged workforce. By unleashing this potential, we will strengthen our core franchises, expand into new and adjacent markets and enhance our global presence.”
The combined company will be headquartered in Melbourne, Fla., under a newly created board of directors with 12 members, six from each company, creating what is described as “a highly experienced and proven leadership team that reflects the strengths and capabilities of both companies.”