Lockheed Martin said today it has agreed to buy Aerojet Rocketdyne for $56 per share in cash in a deal worth a total $4.4 billion.
Lockheed said the $56 per share figure would be reduced to $51 per share "after the payment of a pre-closing special dividend."
The acquisition marks Lockheed's first major acquisition since it picked up Sikorsky in 2015. The deal is also the first sizeable one led by Jim Taiclet, who became chief executive earlier this year.
Aerojet recorded 2019 sales of about $2 billion and has almost 5,000 employees and 15 primary operations sites in the United States, according to Lockheed.
"The proposed acquisition adds substantial expertise in propulsion to Lockheed Martin's portfolio, and expands on the solid foundation built by Lockheed Martin and Aerojet Rocketdyne over many years," Lockheed said in its announcement. "Aerojet Rocketdyne's propulsion systems are already a key component of Lockheed Martin's supply chain and several advanced systems across its Aeronautics, Missiles and Fire Control and Space business areas."
In its own announcement, Aerojet Rocketdyne said the per-share sale price represents a 33% premium over its closing stock price Friday and a roughly 43% premium over its volume weighted average stock price over the last 90 trading days.
The deal is slated to close in the second half of 2021 and will require regulatory approvals.
Lockheed said it will form a transition team to ensure "seamless integration."