Lockheed Martin to purchase Aerojet Rocketdyne in $4.4B deal

Aerojet Rocketdyne group photo
Aerojet Rocketdyne personnel and VIPs, which includes representatives from Lockheed Martin, acquire for a group photograph in 2017 at Aerojet’s Redmond facility with a banner that says, “The Road to Mars Goes As a result of Redmond, WA.” (Aerojet Rocketdyne Picture / Mike Labbe)

Lockheed Martin has struck a deal to get Aerojet Rocketdyne Holdings in an all-money transaction valued at $4.4 billion, the two providers declared nowadays.

The arrangement marks the newest mix of space marketplace heavyweights, pursuing Northrop Grumman’s $7.8 billion acquisition of Orbital ATK in 2017.

It also marks a alter of ownership for Aerojet Rocketdyne’s area propulsion facility in Redmond, Wash., 1 of the Seattle area’s oldest house ventures.

The Redmond facility began procedure in 1968 as Rocket Research, and was acquired by Aerojet in 2002. It has constructed thruster programs for nearly each interplanetary mission given that the Apollo period.

Aerojet Rocketdyne’s Redmond team, which numbers much more than 400 staff, is at this time doing the job on propulsion devices for the Orion deep-place capsule that Lockheed Martin is building for NASA’s use. Other sorts of constructed-in-Redmond thrusters are on their way to Mars for NASA’s Perseverance rover mission — a mission in which Lockheed Martin is also participating in a portion.

In all, Aerojet Rocketdyne operates 14 rocket progress services that span the country, from New Jersey and Florida to California, the place the company is based mostly.

The complicated offer phone calls for Lockheed Martin to obtain Aerojet Rocketdyne for $56 a share in funds, adjusted to $51 per share just after the payment of a specific pre-closing dividend of $5 for each share. Lockheed Martin reported the whole transaction price would be $4.4 billion, such as the assumption of internet cash.

Aerojet Rocketdyne reported the payout represents a around 33% high quality more than the company’s closing stock selling price on Friday.

“We are pleased to provide with each other our complementary firms in a transformative transaction that will supply premium hard cash price for our shareholders and huge benefits for our staff, consumers and partners,” Eileen Drake, Aerojet Rocketdyne’s CEO and president, reported in a information launch.

Lockheed Martin’s space division has its hand in programs ranging from Orion and Mars missions to its collaboration with Jeff Bezos’ Blue Origin space undertaking on a proposed lunar lander, its perform on national security satellites and its 50 percent-curiosity (with Boeing) in United Launch Alliance.

“Acquiring Aerojet Rocketdyne will maintain and fortify an necessary element of the domestic protection industrial base and reduce costs for our shoppers and the American taxpayer,” James Taiclet, Lockheed Martin’s president and CEO, claimed in a information launch.

The two companies mentioned the transaction is expected to near in the 2nd half of 2021, matter to the pleasure of customary closing conditions, which includes approvals from regulators and from Aerojet Rocketdyne’s stockholders. A changeover crew will be formed to control the integration of functions.