Lockheed Martin Corp said on Sunday it has agreed to buy U.S. jet engine manufacturer Aerojet Rocketdyne Holdings Inc for $4.4 billion, including debt and net cash.
Lockheed’s biggest acquisition is the deal since Jim Taiclet took over as chief executive in June. He’s seeking to support the company’s propulsion capabilities amid competition from new entrants like SpaceX and Blue Origin, for space contracts with the U.S. government.
“Acquiring Aerojet Rocketdyne will preserve and strengthen an important component of the domestic defence industrial base. Also to reduce costs for our customers and therefore the American taxpayer,” Taiclet said during a statement.
“As a part of Lockheed Martin, we are going to bring our advanced technologies. Along with their substantial expertise and resources to accelerate our shared purpose. Which is enabling the defense of our nation and space exploration,” Aerojet’s CEO Eileen Drake said during a statement.
Lockheed said it’ll pay $56 per share for Aerojet Rocketdyne, a 33 per cent premium to Friday’s damage. Reducing of the acquisition price to $51 per share after the payment of a pre-closing special dividend, Lockheed added.
The Bethesda, Maryland-based company already uses Aerojet Rocketdyne’s propulsion systems in its aeronautics, missiles and readying offerings.
Lockheed said regulators will scrutinize the transaction. Giving the company’s leading position within the defence sector, is predicted to shut down within the last half of 2021.
Taiclet took the highest job at Lockheed in June. He closed here on a deal to buy Integration Innovation Inc.. A Huntsville, Alabama-based hypersonic weapon software and systems maker, by November.
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