logo
Plus   Neg
Share
Email

Lockheed Martin To Buy Aerojet Rocketdyne In $4.4 Bln Deal

Lockheed Martin Corp. (LMT) agreed to buy Sacramento, California-based aerospace and defense rocket engine manufacturer Aerojet Rocketdyne Holdings Inc. (AJRD) in $4.4 billion deal.

"This transaction enhances Lockheed Martin's support of critical U.S. and allied security missions and retains national leadership in space and hypersonic technology...," said James Taiclet, Lockheed Martin president and CEO.

Lockheed said Sunday that it will pay $56 per share for Aerojet Rocketdyne. The purchase price will be reduced to $51 per share after the payment of a pre-closing special dividend. It represents a post-dividend equity value of $4.6 billion and a total transaction value of $4.4 billion including the assumption of net cash.

As part of approving the deal, Aerojet Rocketdyne will pay a special cash dividend of $5 per share to its holders of record of common stock and convertible senior notes as of the close of business on March 10, 2021, and payable on March 24, 2021.

Aerojet Rocketdyne has about 5,000 employees, and 15 primary operations sites across the United States. It reported revenue of about $2 billion in 2019.

Lockheed expects to close the deal in the second half of 2021. The deal is subject to the satisfaction of customary closing conditions, including regulatory approvals and approval by Aerojet Rocketdyne's stockholders.

For comments and feedback contact: editorial@rttnews.com

Business News

Follow RTT