Lockheed Martin Corp. is expanding its foray into futuristic space travel and missile defense by acquiring supplier Aerojet Rocketdyne Holdings Inc. in a deal valued at $4.4 billion, targeting higher sales and more savings in an environment of tightening defense budgets.
As part of the transaction, Aerojet declared a $5 per share special dividend, to be paid March 24, to holders of record as of March 10. The payment of that special dividend will adjust the $56 per share consideration to be paid by Lockheed Martin, according to a statement Sunday.
At $51, Lockheed will be buying Aerojet at a 21% premium over the stock’s Friday closing price. Lockheed Chief Executive Jim Taiclet stepped into the top job this year with a reputation as a dealmaker, and the company had a stockpile of cash. With Aerojet, he’s picking up a key U.S. supplier of propulsion systems for missiles, rockets and other space and defense applications.
Lockheed Martin acquires rocket engine maker Aerojet Rocketdyne for $4.4B as space heats up
Lockheed Martin (LM), the U.S.’s largest defence contractor, will acquire Aerojet Rocketdyne (AR), a rocket engine and missile manufacturer, for $4.4 billion including debt and net cash, giving the company a larger stake in space and hypersonic technology. The move comes amid the context of increasing competition in the Space and Defence industries.
In a news release, the company said the proposed acquisition adds substantial expertise in propulsion to Lockheed Martin’s portfolio and that Aerojet Rocketdyne’s technologies were already “key components” of Lockheed’s supply chain. It already uses Aerojet Rocketdyne’s propulsion systems in its aeronautics, missiles and fire control offerings.
Lockheed to buy Aerojet Rocketdyne
‘ESSENTIAL’: Aerojet is a key supplier of propulsion systems for rockets and other defense applications, which Lockheed said would be crucial for the future
Bloomberg
Lockheed Martin Corp has agreed to acquire the defense industry supplier Aerojet Rocketdyne Holdings Inc in a US$4.4 billion deal.
As part of the transaction, Aerojet declared a US$5 per share special dividend, to be paid on March 24 next year, to holders of record as of March 10.
The payment of that special dividend would adjust the US$56 per share consideration to be paid by Lockheed Martin, according to a statement on Sunday.
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Lawmakers step in as fuel cell makers decry state contracts By Alex Soule
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Photo: Doosan Fuel Cell America
Clean energy contracts that were apparently headed for fuel cell makers would be diverted to solar companies in a reversal of preliminary awards that fuel cell companies say is unfair with one in Danbury questioning the motives of the Connecticut Department of Energy and Environmental Protection.
Under the Shared Clean Energy Facilities program, the contracts would fund electricity generators to share the benefits of alternative energy in low-income areas. Fuel cell makers including FuelCell Energy, based in Danbury have proposed converting industrial sites including brownfields for the purpose.