Lockheed Martin buys Aerojet Rocketdyne for $4.4 billion
The transaction is expected to close in the second half of 2021
Stocks impacted: Lockheed Martin (LMT), Aerojet Rocketdyne Holdings (AJRD)
Lockheed Martin is buying rocket engine manufacturer Aerojet Rocketdyne Holdings for $4.4 billion. The deal brings together the two companies that already had been working together in the aeronautics industry. The transaction is expected to close in the second half of 2021, subject to the satisfaction of customary closing conditions. The deal will allow the defense giant to beef up its technical know-how in the areas of space, propulsion, and munitions. The agreement calls for Lockheed to pay $56 per share in cash, which is expected to be reduced to $51 per share after the payment of a pre-closing special dividend. Aerojet Rocketdyne said the payout represents a roughly 33% premium over the company’s closing stock price on Friday. Lockheed Martin stocks finished nearly 1% higher on Friday.
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