And I believe as we continue to negotiate milestone payments, we’ll be more cash favorable. So I throw that out there to maybe answer a couple of the questions. On the cost synergy, we believe there’s something in the $50 million range easily from eliminating the public company cost and some of the duplicative overhead. You’re right. We have no plans to move facilities, but I look at the footprint. We both have offices in D.C. We both have offices in Huntsville. There’s some low-hanging fruit there, and we really didn’t anticipate or plan at this point any synergies relative to supply chain. So we need to dig into that and of course, take the power of the new enterprise. So I think that gets us on the gets to your question, Doug, on cost synergies.
And from L3Harris, we overachieved. And once we get into details, there’s potential to continue to exceed those numbers from the cost synergy. Revenue synergy, given that these are new markets, and there’s no overlap, we have no revenue synergies at this point in time. So that, I think, is a straightforward answer. I guess on the operations, it’s clearly €“ I think we have great opportunities here to, to bring our skill set and enhance our €“ the performance of Aerojet Rocketdyne. And I look at what we did at L3Harris before the merger. Look at the TR3 program as an example, and maybe our Waco facility. Both those locations are €“ the TR3 program was over budget in late. Waco facility was losing money. And with the scale of the new company, more talent, processes, policies, controls, the ability to attract new people, we were able to turn not only that program, but that business around.
And I think those are the capabilities that we’ll be able to bring to Aerojet Rocketdyne. Relative to pre-closing exposure, I don’t think there’s anything unique in this relative to other acquisitions. The integration team meets on a regular basis. I would think it’s next week or the week after, we’ll start having people on-site at some of these facilities as part of the integration process. As you would expect, Eileen Drake and I meet on a regularly €“ regular basis. So we, in fact, I had a call yesterday and we have one every week and sometimes more. So I think that’s how we’re going to stay in touch, and we can do whatever we can to help them. I’m optimistic that this is going to be a very accretive and successful acquisition. We’re excited.
The employees are excited, and I apologize for the long answer, but I wanted to try to hit all five or six of your questions, Doug.
Operator: Thank you. Our next question is from the line Robert Stallard with Vertical Research. Please proceed with your question.
Robert Stallard: Thanks so much. Good morning.
Chris Kubasik: Good morning.
Michelle Turner: Good morning.
Robert Stallard: Chris, I’ll keep it to one following up from Doug’s question though. When you looked at Aerojet and you look to the other levers you could pull on capital deployment, why did you think this is the best option for shareholders to go with versus continuing with the share buyback? Thank you.
