(Reuters) – Lockheed Martin Corp. said on Sunday that it has agreed to buy U.S. rocket engine maker Aerojet Rocketdyne Holdings Inc for $ 4.4 billion, including debt and net cash.
This deal is Lockheed’s biggest purchase since Jim Taiclet took over as chief executive in June. It seeks to strengthen the company’s mobility capabilities amid competition from new entrants such as SpaceX and Blue Origin, for space contracts with the U.S. government.
“Rocketdyne’s Aerojet will retain and strengthen an integral part of the home defense business base and reduce costs to our customers and American taxpayers,” Taiclet said in a statement.
“As part of Lockheed Martin, we will bring our advanced technologies together with their vast knowledge and resources to accelerate our common purpose: enabling the defense of our country and space exploration,” said Aerojet CEO Eileen Drake. the recitation.
Lockheed said it will pay $ 56 per share for the Rocketdyne Aerojet, a 33 percent price to Friday’s closing price. The purchase price will be reduced to $ 51 per share after pre-closing special installment payment, Lockheed added.
The Bethesda, Maryland-based company already uses Rocketdyne’s Aerojet propulsion systems in the aircraft, missiles and fire control offerings.
Lockheed said the deal, which is to be investigated by regulators as the company’s main position in the defense sector, is expected to close in the second half of 2021.
Taiclet took over the key job at Lockheed in June and closed here on a contract to buy Integration Innovation Inc., a Huntsville-based software and systems maker of Huntsville, by November.
Reporting with Mike Stone in Washington, DC; Edited by Greg Roumeliotis and Diane Craft