Defense contractor Lockheed Martin Corp. announced Dec. 20 that it would acquire Aerojet Rocketdyne Holdings Inc. for $4.4 billion.
Aerojet Rocketdyne’s propulsion systems are a key component of Lockheed’s supply chain, and the acquisition will substantially boost propulsion expertise within the company, according to Lockheed Martin.
Aerojet Rocketdyne employs nearly 5,000 workers and has 15 primary operations sites in the U.S., according to the press release announcing the deal. Its 2019 revenue was approximately $2 billion.
Lockheed Martin has agreed to acquire Aerojet Rocketdyne for $56 per share in cash. That should be reduced to $51 per share following payment of a pre-closing special dividend, the announcement said.
The deal is expected to close in the second half of 2021, subject to typical closing conditions and regulatory approvals.
(Photo is Aerojet Rocketdyne’s advanced manufacturing facility in Huntsville.)
