Lockheed Martin to acquire Aerojet Rocketdyne for $4.4 billion

Lockheed Martin Corp. has entered into a definitive agreement to acquire Aerojet Rocketdyne Holdings Inc. for a total transaction value of $4.4 billion. Terms of the agreement have been unanimously approved by each company’s board of directors.

James Taiclet, Lockheed Martin president and CEO, said, "This transaction enhances Lockheed Martin's support of critical U.S. and allied security missions and retains national leadership in space and hypersonic technology. We look forward to welcoming their talented team and expanding Lockheed Martin's position as the leading provider of 21st century warfare solutions."

Eileen P. Drake, CEO and president of Aerojet Rocketdyne, said, “Joining Lockheed Martin is a testament to the world-class organization and team we’ve built and represents a natural next phase of our evolution. As part of Lockheed Martin, we will bring our advanced technologies together with their substantial expertise and resources to accelerate our shared purpose: enabling the defense of our nation and space exploration.”

With 2019 revenue of approximately $2 billion, nearly 5,000 employees, and 15 primary operations sites across the United States, El Segundo, California-based Aerojet Rocketdyne is a world-recognized aerospace and defense rocket engine manufacturer.

Bethesda, Maryland-based Lockheed Martin Corp. employs approximately 110,000 people worldwide.

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 throughout many years. 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.

The transaction is expected to close in the second half of 2021 and is subject to customary closing conditions, including regulatory approvals and approval by Aerojet Rocketdyne's stockholders.

A transition team will be formed to allow for a seamless integration and ensure continuity for customers, employees, and other stakeholders.