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Aerospace and defense supply giant Lockheed Martin is significantly boosting its rocket engine capabilities through a major acquisition.
The Bethesda, Maryland-based company announced on December 20 that it had reached an agreement to acquire El Segundo, California-based Aerojet Rocketdyne Holdings, Inc., a technology company that serves as a solutions provider to customers in the aerospace, defense, and real estate markets. The deal is valued at $4.6 billion, with a transaction value of $4.4 billion.
Aerojet Rocketdyne had 2019 sales of about $2 billion and is operated by nearly 5,000 employees across 15 primary operations sites across the United States. It was formerly known as GenCorp.
James Taiclet, Lockheed Martin’s president and CEO since June 2000, said the acquisition enhances the company’s support of critical U.S. and allied security missions and retains U.S. national leadership in space and hypersonic technology. Aerojet adds considerable propulsion expertise to Lockheed’s portfolio, which was already utilizing Aerojet’s propulsion systems as a key supply chain component.
The deal is expected to be completed in the second half of 2021. It follows Lockheed’s November 2020 acquisition of the Hypersonics portfolio of Integration Innovation Inc. (I3) — a Huntsville, Alabama-based designer, developer, and producer of integrated hypersonic weapon systems. Terms were not disclosed.
Aside from I3, Aerojet Rocketdyne marks the first major acquisition for Lockheed Martin since its $9 billion purchase of Sikorsky Aircraft from United Technologies Corporation in 2015. In 2014, Lockheed Martin acquired Industrial Defender Inc. and Beontra AG — each for an undisclosed amount. The company’s other acquisitions in the past decade were the engine MRO assets from Aveos Fleet Performance and Amor Group — both in 2013.
With about $60 billion in 2019 sales, Lockheed Martin has approximately 110,000 employees.
Image Credit: @AerojetRdyne / Twitter
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