Lockheed Martin announces acquisition of Aerojet Rocketdyne

Special to the News-Times Lockheed Martin Corporation announced Sunday it had entered into a definitive agreement to acquire Aerojet Rocketdyne Holdings, Inc.

The sale will cost Lockheed $56 per share in cash, which is expected to be reduced 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 of $5 per share to its holders of record of common stock and convertible senior notes (on an as-converted basis, and revocable at its option through the payment date) as of the close of business on March 10, 2021, and payable on 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. “This transaction enhances Lockheed Martin’s support of critical U.S. and allied security missions and retains national leadership in space and hypersonic technology. We look forward to welcoming their talented team and expanding Lockheed Martin’s position as the leading provider of 21st century warfare solutions.”

With 2019 revenue of approximately $2 billion, nearly 5,000 employees, and 15 primary operations sites across the United States, Aerojet Rocketdyne is a world-recognized aerospace and defense rocket engine manufacturer. Aerojet Rocketdyne has deep customer relationships and significant demand for its innovative technologies. The proposed acquisition adds substantial expertise in propulsion to Lockheed Martin’s portfolio, and expands

on the solid foundation built by Lockheed Martin and Aerojet Rocketdyne over many years. Aerojet Rocketdyne’s propulsion systems are already a key component of Lockheed Martin’s supply chain and several advanced systems across its Aeronautics, Missiles and Fire Control and Space business areas.

The transaction is expected to close in the second half of 2021 and is subject to the satisfaction of customary closing conditions, including regulatory approvals and approval by Aerojet Rocketdyne’s stockholders. Lockheed Martin has a history of successful integrations and will work to efficiently deliver the many strategic and financial benefits of this transaction. A transition team will be formed to allow for a seamless integration and ensure continuity for customers, employees and other stakeholders.

Approximately 650 people are employed in Lockheed Martin’s manufacturing and support buildings in Camden, in neighboring Ouachita County, according to the company’s website. Several types of missiles and rockets used in U.S. defense are manufactured there.

Aerojet broke ground on a new solid rocket motor manufacturing facility in Camden in April, 2019. At that time, 800 people worked for the company’s existing manufacturing facility in Camden; according to a press release from the company, they planned to add an additional 900 jobs at the new facility over the following three years.

Caitlan Butler contributed reporting.