Image source: Aerojet Rocketdyne
(Reuters)-Rockyed Martin said on Sunday that it had agreed to acquire US rocket engine maker Aerojet Rocketdyne Holdings for $ 4.4 billion, including debt and net cash.
The deal is Lockheed’s largest acquisition since Jim Takerate took over as CEO in June. He seeks to strengthen the company’s impetus in competition with new entrants such as SpaceX and Blue Origin over space contracts with the US government.
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“By acquiring Aerojet Rocketdyne, we can maintain and strengthen an integral part of our domestic defense industry base and reduce costs for our customers and US taxpayers,” Taiclet said in a statement.
Lockheed said it would pay Aerojet Rocketdyne $ 56 per share. This is a 33 percent premium on Friday’s closing price. Lockheed added that the purchase price will be reduced to $ 51 per share after paying a special pre-closing dividend.
Based in Bethesda, Maryland, the company already uses Aerojet Rocketdyne’s propulsion system in aeronautical, missile, and fire protection products.
Lockheed said the deal, which will be scrutinized by regulators given the company’s leading position in the defense sector, is expected to close in late 2021.
Report by Mike Stone in Washington, DC. Edited by Greg Roumeliotis.