Lockheed Martin to acquire Aerojet Rocketdyne, seeks growth in hypersonics and spaceNews
December 21, 2020
BETHESDA, Md. Lockheed Martin has entered into a definitive agreement to acquire aerospace and defense engine maker Aerojet Rocketdyne Holdings for $56 per share in cash, expected to be reduced to $51 per share after the payment of a preclosing special dividend; the deal will operate on a postdividend equity value of $4.6 billion and a total transaction value of $4.4 billion, including the assumption of net cash.
"Acquiring Aerojet Rocketdyne will preserve and strengthen an essential component of the domestic defense industrial base and reduce costs for our customers and the American taxpayer," said James Taiclet, Lockheed Martin president and CEO. "This transaction enhances Lockheed Martin's support of critical U.S. and allied security missions and retains national leadership in space and hypersonic technology. We look forward to welcoming their talented team and expanding Lockheed Martin's position as the leading provider of 21st-century warfare solutions."
According to a news release on the deal by Lockheed Martin, the acquisition of Aerojet Rocketdyne is expected to close in the second half of 2021, subject to approvals by regulators and Aerojet Rocketdyne’s stockholders.