Lockheed Martin to Acquire Rocketdyne

Issue 50

12.21.20 - Lockheed Martin has agreed to acquire Aerojet Rocketdyne Holdings Inc. in a deal that’s estimated to be valued at $4.4 billion. Chief Executive Officer of Lockheed Martin, Jim Taiclet, stated his intent to expand Lockheed - the world’s largest defense contractor - through acquisitions. Aerojet provides Lockheed a crucial supplier of propulsion systems for aerospace and defense applications.

“Acquiring Aerojet Rocketdyne will preserve and strengthen an essential component of the domestic defense industrial base,” Taiclet stated in a press release.Top of Form
Aerojet, a defense industry supplier, declared a $5 per share special dividend to holders that have been on record as of March 10. The payment of that special dividend will adjust the $56 per share consideration to be paid by Lockheed Martin and will be paid this upcoming March 24th.

It has been long known that Lockheed has been looking for potential deals and acquisitions.  The defense contracting giant has stated early this year that it is, in fact, flush with cash and looking for deals as one of its chief rivals, Raytheon Co., prepares to merge with United Technologies Corp. in an attempt to develop a serious aerospace-and-defense competitor. Lockheed has stated clearly that it has been searching for an opening to, “…bring in the technologies faster into the company that we think are going to be crucial for the future,” Taiclet said during its October earnings call. “So we plan to be active, but we also plan to be very, very prudent.”

Source: Bloomberg