Lockheed Martin has made a deal to acquire Aerojet Rocketdyne Holdings in an all-cash transaction valued at $4.4 billion. The the two companies announced on Monday.
The latest combination of the space industry titans, this agreement follows Northrop Grumman’s $7.8 billion acquisition of Orbital ATK in 2017.
One of the Seattle Area’s oldest space ventures is Aeroject Rocetdyne’s space propulsion in Redmond, Washington. Moreover, it designates a change of ownership for them.
In 1968, the Redmond facility began its operations as Rocket Research. It was bought by Aerojet in 2002. The company builds thruster systems for almost every interplanetary mission since the Apollo Era.
With more than 400 employees, Aerojet Rocketdyne’s Redmond is at present working on propulsion systems for the Orion deep-space capsule by Lockheed Martin for NASA’s use. In addition, other types of built-in-Redmond Thrusters are reportedly on their way to Mars. That is for NASA’s Presevance rover mission. Moreover, for the Mission, Lockheed Martin is playing a part.
Operating 14 rocket development facilities that span the nation are by Aerojet Rocketdyne where the company is based.
For $56 a share in cash, this complex deal calls for Lockheed Martin to acquire Aerojet Rocketdyne. It was adjusted to $51 per share after is reportedly the payment of a special pre-closing dividend of $5 per share. In fact, Lockheed Martin said the total transaction value would be $4.4 billion This includes the assumption of net cash.
Therefore, roughly 33 percent premium over the company’s closing stock price Friday, December 18th, Aerojet Rocketdyne said the payment represents.
Our complementary companies have come together in a transformative transaction. It will provide a premium cash value for shareholders and huge benefits for our employees, customers, and partners, Eileen Drake, Aerojet Rocketdyne’s CEO, and president. Drake reported in a news release.