Lockheed Martin on Sunday agreed to acquire Aerospace and defense engine manufacturer Aerojet Rocketdyne for $4.4 billion, according to Fox Business. The deal includes debt and net cash.

  • Lockheed will pay $56 per share for Aerojet Rocketdyne, a 33% premium to Friday’s closing price.
  • Lockheed expects to preserve and strengthen an essential component of the domestic defense industrial base and reduce costs for its customers through Rocketdyne acquisition-
  • The deal enhances Lockheed’s support of critical U.S. and allied security missions and retains national leadership in space and hypersonic technology.
  • Aerojet Rocketdyne’s shareholders will receive a special pre-closing dividend of $5 per share in common stock and convertible senior notes in March 2021, which will reduce the transaction’s purchase price to $51 per share.
  • Aerojet Rocketdyne has nearly 5,000 employees and 15 primary operation sites in the U.S. and earned about $2 billion in revenues in 2019
  • Lockheed expects to complete the transaction in the second half of 2021
  • Additional details regarding the deal will be discussed with investors and analysts during a live webcast at 8:30 a.m. Monday.

Lockheed’s stock is currently declining as Aerojet Rocketdyne gains. LMT: NYSE is down 1.26%, AJRD: NYSE is up 22.29%