Lockheed to acquire Amentum product unit for $360M

Lockheed Martin has agreed to acquire a product development business from Amentum for $360 million in cash to further build up Lockheed's lineup of airborne and space technologies, among others.

Known inside Amentum as Rapid Solutions, this business unit employs approximately 230 people that work on the manufacturing of communications and other tactical systems for national security programs.

Rapid Solutions will become a part of Lockheed’s space segment upon closure of the transaction announced Wednesday. All parties involved expect to complete the move in the second half of this year.

In Lockheed’s announcement, the company also cited Rapid Solutions’ electronically steered array offering as key to its rationale for the acquisition.

For Amentum, this pending divestiture follows the merger that essentially created a “New Amentum” from the legacy company and two of Jacobs’ federal-facing services units. The Rapid Solutions business accounts for approximately 1% of Amentum’s annual revenue and adjusted EBITDA (earnings before interest, taxes, depreciation and amortization).

Amentum expects the sale to generate $325 million in after-tax proceeds.