Lockheed Martin inks $4.4 bln deal to acquire Aerojet Rocketdyne (updated)
21/12/2020 24:50
(Adds Aerojet statement, recent Lockheed deal)
By Mike Stone
Dec 20 (Reuters) - Lockheed Martin Corp LMT.N said on
Sunday it has agreed to buy U.S. rocket engine manufacturer
Aerojet Rocketdyne Holdings Inc AJRD.N for $4.4 billion,
including debt and net cash.
The deal is Lockheed's biggest acquisition since Jim Taiclet
took over as chief executive in June. He is seeking to beef up
the company's propulsion capabilities amid competition from new
entrants such as SpaceX and Blue Origin, for space contracts
with the U.S. government.
"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,"
Taiclet said in a statement.
"As part of Lockheed Martin, we will bring our advanced
technologies together with their substantial expertise and
resources to accelerate our shared purpose: enabling the defense
of our nation and space exploration," Aerojet's CEO Eileen Drake
said in a statement.
Lockheed said it will pay $56 per share for Aerojet
Rocketdyne, a 33 percent premium to Friday's closing price. The
purchase price will be reduced to $51 per share after the
payment of a pre-closing special dividend, Lockheed added.
The Bethesda, Maryland-based company already uses Aerojet
Rocketdyne's propulsion systems in its aeronautics, missiles and
fire control offerings.
Lockheed said the transaction, which is set to be
scrutinized by regulators given the company's leading position
in the defense sector, is expected to close in the second half
of 2021.
Taiclet took the top job at Lockheed in June and closed https://news.lockheedmartin.com/2020-11-25-Lockheed-Martin-Completes-Acquisition-of-i3-Hypersonics-Portfolio
on a deal to buy Integration Innovation Inc., a Huntsville,
Alabama-based hypersonic weapon software and systems maker, by
November.
(Reporting by Mike Stone in Washington, D.C.; Editing by Greg
Roumeliotis and Diane Craft)
((Greg.Roumeliotis@thomsonreuters.com; +1 646 223 6022; Reuters
Messaging: greg.roumeliotis.thomsonreuters.com@reuters.net))