Lockheed Martin Agrees to Buy Aerojet Rocketdyne
December 20 2020 - 7:16PM
Dow Jones News
By Doug Cameron
Lockheed Martin Corp. announced plans on Sunday to buy space and
missile defense specialist Aerojet Rocketdyne Holdings Inc. for
around $4.6 billion in cash.
The proposed deal would give it one of the largest makers of
rocket motors for space launch vehicles and missiles, one of the
few growth areas even as the Pentagon's budget is expected to
remain flat over the next several years.
Lockheed Martin Chief Executive Jim Taiclet flagged plans to
prioritize acquisitions when he took over in the summer, and the
proposed deal follows a recent string of smaller transactions by
rivals in the defense services sector.
Aerojet Rocketdyne employs around 5,000 staff and had revenue of
almost $2 billion last year. Its order backlog approaching $7
billion includes some of the biggest Pentagon priorities such as
hypersonic missiles as well as work for the National Aeronautic and
Space Administration.
The company makes rocket boosters for key missile defense
systems such as Lockheed's own Thaad program and provides a route
into other big priorities such as the replacement of land-based
nuclear missiles led by Northrop Grumman Corp. and the Boeing
Co.-led Space Launch System.
Lockheed Martin offered $56 a share for Aerojet, reduced to $51
following the payment of a cash dividend, a 17% premium over its
closing price Friday.
Write to Doug Cameron at doug.cameron@wsj.com
(END) Dow Jones Newswires
December 20, 2020 19:01 ET (00:01 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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