US Military Industrial Corporation acquires Aerojet Rocketdyne

US Military Industrial Corporation acquires Aerojet Rocketdyne Lockheed said it would pay $56 per share for Aerojet Rocketdyne, a 33 percent premium to Friday’s closing price.
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December 21, 2020 11:44
US Military Industrial Corporation acquires Aerojet Rocketdyne

Lockheed Martin said Sunday it has agreed to buy U.S. rocket engine manufacturer Aerojet Rocketdyne for $4.4 billion, including debt and net cash.

Report informs citing the CNBC that the deal is Lockheed’s biggest acquisition since Jim Taiclet took over as chief executive in June. He is seeking to beef up the company’s propulsion capabilities amid competition from new entrants such as SpaceX and Blue Origin for space contracts with the U.S. government.

“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,” Taiclet said in a statement.

“As part of Lockheed Martin, we will bring our advanced technologies together with their substantial expertise and resources to accelerate our shared purpose: enabling the defense of our nation and space exploration,” Aerojet’s CEO Eileen Drake said in a statement.

Lockheed said it would pay $56 per share for Aerojet Rocketdyne, a 33 percent premium to Friday’s closing price. Lockheed added the purchase price would be reduced to $51 per share after the payment of a pre-closing special dividend.

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