By Michael Dabaie

 

Aerojet Rocketdyne Holdings Inc. shares were up about 25%, to $52.32, in Monday afternoon trading.

Lockheed Martin Corp. said Sunday it would acquire Aerojet Rocketdyne for $56 per share in cash, which is expected to be reduced to $51 per share after the payment of a pre-closing special dividend.

Lockheed said this represents a post-dividend equity value of $4.6 billion and a total transaction value of $4.4 billion including the assumption of net cash.

Aerojet Rocketdyne declared a $5-a-share pre-closing special dividend to holders of its common shares and convertible senior notes.

Aerospace and defense rocket engine manufacturer Aerojet Rocketdyne had 2019 revenue of about $2 billion and has nearly 5,000 employees and 15 primary operations sites across the U.S.,

Lockheed's plan to acquire Aerojet Rocketdyne solidifies its focus on hypersonics, J.P. Morgan said in a note on Lockheed.

Lockheed Martin shares were down 1%, to $351.91.

 

Write to Michael Dabaie at michael.dabaie@wsj.com

 

(END) Dow Jones Newswires

December 21, 2020 14:26 ET (19:26 GMT)

Copyright (c) 2020 Dow Jones & Company, Inc.
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