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Summary
- Lockheed Martin Corporation is going to acquire Aerojet Rocketdyne Holdings, Inc. in an all-cash deal estimated at $4.4 billion.
- The acquisition will see Lockheed paying $56 per share in cash, which is likely to be reduced to $51 per share after pre-closing special dividend payment.
- The deal, which is subject to regulatory and other necessary nods, is expected to be completed in the second half of 2021.
In a move to beef up its technological advancement in aerospace, US-based defence technology company Lockheed Martin Corporation (NYSE:LMT) is going to acquire Aerojet Rocketdyne Holdings, Inc. in an all-cash deal estimated at around $4.4 billion.
The acquisition will see Lockheed paying $56 per share in cash, which is likely to be reduced up to $51 per share after pre-closing special dividend payment.
Lockheed Martin CEO and President James Taiclet said in a press release that the decision to acquire Aerojet Rocketdyne would enable the firm to maintain and bolster a vital element of the local defence industrial base and lower the costs for the firm’s customers and the American taxpayer.
He added that the deal would boost Lockheed’s aid to key US and affiliated security operations and preserve national governance in space and hypersonic technology. The company is excited to see the partnership growing and Lockheed becoming the prominent provider of 21st Century combat solutions.
The deal, which is subject to regulatory and other necessary nods, is expected to be completed in the second half of 2021. The acquisition will significantly enhance the proficiency in propulsion to Lockheed's portfolio and develops on the strong foundation built by Lockheed and Aerojet over many years.
Aerojet Rocketdyne CEO and President Eileen P. Drake said the company is happy to join Lockheed as this shows the firm’s overall hard work in building a world-class organization. The deal will help the company to provide the best of its technical services to Lockheed, which would boost both the company’s shared vision of improving the country's space exploration.
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As part of the acquisition, the company had announced a $5.00 per share pre-closing special dividend to common shareholders and owner of convertible senior notes, on an as-converted basis. This special dividend is slated to be paid on 24 March.
Aerojet Rocketdyne is a world-renowned aerospace and defence rocket engine company, with about 5,000 workforce and 15 major operations sites across the US. In 2019, the company registered about $2 billion in revenue.
