BETHESDA, Md. (AP) — Lockheed Martin is buying rocket engine manufacturer Aerojet Rocketdyne Holdings for $4.4 billion in a deal that brings together companies that already had been working together in the aeronautics industry.
The acquisition announced late Sunday is part of Lockheed Martin's attempt to gird for competition from recent industry entrants, Space X and Blue Origin, which are backed by two of the world's richest men, Elon Musk and Jeff Bezos.
“Acquiring Aerojet Rocketdyne will preserve and strengthen an essential component of the domestic defense industrial base and reduce costs for our customers and the American taxpayer,” Lockheed Martin CEO James Taiclet said in a statement.
Bethesda, Maryland-based Lockheed is paying $56 per share, 33% above the Friday closing price of Aerojet Rocketdyne's stock. The final price will be reduced to $51 per share after accounting for a special dividend of $5 per share that will be paid just before the deal closes. The companies are aiming to have the deal wrapped up during the second half of next year.
Before you consider Lockheed Martin, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Lockheed Martin wasn't on the list.
While Lockheed Martin currently has a "Moderate Buy" rating among analysts, top-rated analysts believe these five stocks are better buys.
View The Five Stocks Here
Click the link below and we'll send you MarketBeat's list of seven best retirement stocks and why they should be in your portfolio.
Get This Free Report
Like this article? Share it with a colleague.
Link copied to clipboard.
