Lockheed Martin Set to Expand Horizons with Aerojet Rocketdyne Acquisition
Lockheed Martin Corporation has officially announced a significant agreement to acquire Aerojet Rocketdyne Holdings, Inc. for $56 per share in cash, which will adjust to $51 per share following a pre-closing special dividend payment. This acquisition implies a post-dividend equity value of $4.6 billion, with an overall transaction value of $4.4 billion, inclusive of net cash obligations.
Aerojet Rocketdyne has declared a special cash dividend of $5 per share to its stockholders and convertible senior note holders, effective for record holders as of March 10, 2021, with the payment set for March 24, 2021. This dividend is revocable until the payment date.
“With the acquisition of Aerojet Rocketdyne, we aim to fortify a vital segment of the domestic defense industrial base, while simultaneously reducing costs for our clients and American taxpayers,” stated James Taiclet, President and CEO of Lockheed Martin. “This strategic move will enhance Lockheed Martin’s role in supporting critical security missions for the U.S. and its allies, while solidifying our national leadership in space and hypersonic technologies. We eagerly anticipate integrating their talented workforce and further expanding our position as a leading provider of 21st-century warfare solutions.”
In 2019, Aerojet Rocketdyne generated approximately $2 billion in revenue, employing close to 5,000 individuals across 15 primary operational sites in the United States. Recognized globally in the aerospace and defense sectors, Aerojet Rocketdyne boasts strong customer relationships and a robust demand for its cutting-edge technologies.
This proposed acquisition will significantly enhance Lockheed Martin’s propulsion expertise, building upon the enduring partnership developed with Aerojet Rocketdyne over several years. Aerojet Rocketdyne’s propulsion systems are integral to Lockheed Martin’s supply chain and play a vital role across its Aeronautics, Missiles and Fire Control, and Space divisions.
The acquisition is projected to finalize in the latter half of 2021, contingent upon meeting standard closing requirements, including regulatory approvals and the green light from Aerojet Rocketdyne’s stockholders. Lockheed Martin has a proven track record in successful integrations and is committed to maximizing the strategic and financial advantages of this merger. A dedicated transition team will be established to ensure a seamless integration process, maintaining continuity for customers, employees, and stakeholders.
Based in Bethesda, Maryland, Lockheed Martin Corporation stands as a global leader in security and aerospace, employing around 110,000 individuals worldwide. The company specializes in the research, design, development, manufacturing, integration, and maintenance of advanced technological systems, products, and services.
