James Taiclet, Lockheed Martin
Global security and aerospace company Lockheed Martin Corp. has entered into a definitive agreement to acquire Aerojet Rocketdyne Holdings, Inc. for $56 per share in cash, which is expected to be slashed to $51 per share after the payment of a pre-closing special dividend.
This represents a post-dividend equity value of $4.6 billion and a total transaction value of $4.4 billion including the assumption of net cash.
As part of approving the transaction, Aerojet Rocketdyne announced a special cash dividend, revocable at its option through the payment date, of $5 per share to its holders of record of common stock and convertible senior notes (on an as-converted basis) as of the close of business March 10, 2021, and payable March 24, 2021.
“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,” said James Taiclet, Lockheed Martin president and CEO.
With 2019 revenue of approximately $2 billion, nearly 5,000 employees and 15 primary operations sites across the U.S., Aerojet Rocketdyne is an aerospace and defense rocket engine manufacturer.
“This transaction enhances Lockheed Martin’s support of critical U.S. and allied security missions and retains national leadership in space and hypersonic technology,” Taiclet said. “We look forward to welcoming their talented team and expanding Lockheed Martin’s position as the leading provider of 21st century warfare solutions.”
