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  December 21, 2020 | International, Aerospace

  Lockheed Martin to Acquire Aerojet Rocketdyne for $4.4 Billion

  By Will Wade and Max Zimmerman Lockheed Martin Corp. agreed to acquire the defense industry supplier Aerojet Rocketdyne Holdings Inc. in a deal valued at $4.4 billion. As part of the transaction, Aerojet declared a $5 per share special dividend, to be paid on March 24, to holders of record as of March 10. The payment of that special dividend will adjust the $56 per share consideration to be paid by Lockheed Martin, according to a statement Sunday. The shares surged in pre-market New York trading on Monday. At $51, Lockheed will be buying Aerojet at a 21% premium from the closing price on Friday. Chief Executive Officer Jim Taiclet, who stepped into the top job this year, has said he was keen to expand the world's largest defense contractor through acquisitions. With Aerojet, he's picking up a key U.S. supplier of propulsion systems for missiles, rockets and other space and defense applications. “Acquiring Aerojet Rocketdyne will preserve and strengthen an essential component of the domestic defense industrial base,” Taiclet said in the statement. Lockheed has been scouting for deals. In January, the company said it was flush with cash and open to deals as rival Raytheon Co. prepared to combine with United Technologies Corp. to create an aerospace-and-defense powerhouse. Lockheed has been seeking opportunities to “bring in the technologies faster into the company that we think are going to be crucial for the future,” Taiclet said during its October earnings call. “So we plan to be active, but we also plan to be very, very prudent.” The Aerojet transaction is expected to close in the second half of 2021 after getting regulatory approvals and a nod from Aerojet's shareholders. Aerojet advanced to $54.44 Monday before markets opened in New York. That's up 29% from Friday's close, which gave the El Segundo, California-based company a market value of $3.25 billion. Lockheed was little changed from its Friday close, which valued the buyer at about $100 billion. At the end of last week, Aerojet's stock was trading at 25 times expected earnings, compared with 16 times for Lockheed. Aerojet's shares have fallen 7.9% this year and Lockheed dropped 8.6%, both underperforming the S&P 500 Index, which climbed 15%. Lockheed's space division is its third-largest business, contributing 18% of its 2019 revenue. The company competes with Elon Musk's SpaceX for U.S. government rocket launches through the United Launch Alliance, its joint venture with Boeing Co. Lockheed was advised by Goldman Sachs, Ardea Partners and Hogan Lovells, while Citigroup and Evercore, as well as Jenner & Block and Gibson, Dunn & Crutcher represented Aerojet. https://www.bloomberg.com/news/articles/2020-12-21/lockheed-martin-to-buy-defense-supplier-aerojet-for-4-4-billion

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  April 20, 2018 | International, Aerospace

  Defense Department halts F-35 deliveries amid repair bill disagreement with Lockheed

  By: Valerie Insinna WASHINGTON — The Pentagon has suspended acceptance of most F-35 deliveries as manufacturer Lockheed Martin and the F-35 program office debate who should be responsible for fixing jets after a production issue last year. “While all work in our factories remains active, the F-35 Joint Program Office has temporarily suspended accepting aircraft until we reach an agreement on a contractual issue and we expect this to be resolved soon,” a Lockheed spokeswoman confirmed in a statement, adding that the company remains confident that it can meet its delivery target of 91 aircraft for 2018. News of the delivery pause was first reported by Reuters. The dispute is rooted in a quality control issue that caused F-35 deliveries to stop from Sept. 21 to Oct. 20. At the time, corrosion was found in fastener holes of F-35As being repaired at Hill Air Force Base in Utah. Lockheed and the JPO were able to agree on a corrective action plan, one source said, and Lockheed was able to complete planned deliveries of the F-35 for 2017. But sometime after that, a dispute over who should pay for the fix resurfaced and the Defense Department opted to take another production pause, a source said, declining to comment on how long deliveries have been suspended. “Per the direction of the program executive officer, F-35 deliveries have been temporarily paused while the government and Lockheed Martin reach an agreement on a contractual issue regarding repair work to remediate the known aircraft fastener hole primer quality escape,” said a statement from the F-35 joint program office. “This is not a safety of flight issue but rather a contractual resourcing issue that needs to be resolved. The government has implemented this pause to ensure the warfighter receives a quality product from industry. We look forward to a swift resolution of this issue.” Production of the aircraft is ongoing at Lockheed's line in Fort Worth, Texas, and at final assembly and check out facilities in Nagoya, Japan, and Cameri, Italy. A source noted that some customers have accepted planes due to warfighter demands. According to Reuters, two aircraft have been delivered to the Defense Department since it imposed the suspension. Meanwhile, a repair bill for more than 200 jets is on the line. The corrosion issue is just one of several production problems that has plagued the F-35 over the last couple years. Vice Adm. Mat Winter, the F-35 joint program executive officer, spoke Wednesday at the Navy League's Sea Air Space conference but did not disclose the fact that deliveries had stopped. A statement from the F-35 joint program office was added at 9:05EST on April 12. https://www.defensenews.com/breaking-news/2018/04/11/defense-department-halts-f-35-deliveries-amid-repair-bill-disagreement-with-lockheed/

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  March 2, 2020 | International, Aerospace

  Growing threat at high altitude: innovation to fight drones

  Over the past ten years, the growing availability of Unmanned Aerial Vehicles (UAV), commonly known as drones, has been a blessing for video enthusiasts and other tech addicts. But it also created a headache for safety authorities. To respond to this flourishing market, countermeasures are being developed in parallel, and represent a full-fledged business today. Very early after their appearance on the market, drones invited themselves on the battlefield. In 2014, the Islamic state was already using versions (Phantom 3 or 4) for reconnaissance. Then came the suicide drones, fitted with makeshift grenades. Conventional armies are also increasingly relying on them. If the United States used to have a quasi-monopoly on offensive UAVs at the beginning of the 21st century, countries such as China, Russia, and even Iran are constantly trying to fill the gap. In 2019, a wave of Iranian-made Qasef drones operated by the Houthi rebels took Saudi Arabia by surprise. Despite the presence of modern anti-aircraft missile systems such as the Patriot, the refineries of Abqaiq and Khurais, eastern Saudi Arabia, were heavily damaged, putting half of the country's oil production to a halt. Even in times of peace, UAVs can constitute a threat. In January 2019, drones caused a panic at London Gatwick Airport (LGW), United Kingdom, in the days preceding Christmas. The airport was closed for three days, creating a financial loss of several millions of pounds. The following months, less successful drone incidents also disturbed traffic at Changi Airport (SIN) in Singapore and at London Heathrow (LHR). To raise awareness of this danger and the lack of readiness, Greenpeace activists intentionally crashed several drones against French nuclear plants. A drone to rule them all In a similar fashion to the airports that have decided to rely on falconry to prevent birdstrikes, Fortem Technologies has decided to fight fire with fire. The US-based company offers several solutions to secure sites at risk from drone threats. A centralized system called SkyDome relies on an array of sensors, cameras and radars to monitor the surroundings and identify potential threats. The integrated artificial intelligence is capable of differentiating a bird from a drone, and to judge if the latter poses a threat or not. Once the threat is identified, SkyDome sends the HunterDrone capable to intercept the culprit and to fish it out of the air using a projectable net. Fortem Technologies has recently caught the interest of the U.S. Department of Defense (DoD). On February 3, 2020, the company announced it had been awarded a contract through the Defense Innovation Unit (DIU). While the price of the contract is unknown, it appears that the DoD chose to acquire the whole set of solutions. “Fortem has a number of technologies that can help protect military bases without adverse effects to local communities,” the manufacturer said. The Israeli company Rafael also offers a centralized system, but with a different solution. Named DroneDome (in reference to the Iron Dome that defends Israel from missile threats) it relies either on a precise jammer, or on a powerful laser. It was this system that put an end to Gatwick's mayhem. It was also used in 2018 to secure the G20 Buenos Aires summit. Man-portable solutions also exist. During the last national day in France, the military presented to the officials two anti-drone rifles (the Nerod F5 by the French-based MC2-Technologies and the DroneGun Tactical by the Australian company DroneShield). The purpose of those Star-Wars-like devices is not to destroy the enemy drones as one could expect, but to jam their signals. When they lose contact with their control base, drones usually go back to their takeoff point or stay in stationary flight until they run out of battery. That solution avoids for dangerous debris to fall and create collateral damages, for example onto a crowd during an event. https://www.aerotime.aero/clement.charpentreau/24617-growing-threat-at-high-altitude-innovation-to-fight-drones