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  Aerojet-Rocketdyne: GenCorp acquires Rocketdyne

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Author Topic:   Aerojet-Rocketdyne: GenCorp acquires Rocketdyne
Robert Pearlman
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From: Houston, TX
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posted 03-15-2012 04:16 PM     Click Here to See the Profile for Robert Pearlman   Click Here to Email Robert Pearlman     Edit/Delete Message   Reply w/Quote
United Technologies Corp. (UTC) of Hartford, Conn., said March 15 it intends to sell its rocket-propulsion business, Pratt & Whitney Rocketdyne, reports Space News.
UTC said selling Rocketdyne will help finance its acquisition of aerospace systems and services vendor Goodrich Corp., Charlotte, N.C. Goodrich shareholders approved the takeover March 13.

Pratt & Whitney Rocketdyne specializes in rocket propulsion and space power systems. Based in Canoga Park, Calif., with major facilities in West Palm Beach, Fla., the company makes the RL-10 upper stage engines used on United Launch Alliance's Atlas 5 and Delta 4 rockets as well as the Delta 4's RS-68 main engine.

Rocketdyne is also working on the J-2X upper stage engine for NASA's planned heavy-lift Space Launch System (SLS). NASA has scheduled two SLS flights so far: one in 2017 and one in 2021. Neither mission calls for an SLS stack that includes a J-2X.

The possible sale of Rocketdyne, whose business suffered following the retirement of NASA's space shuttle, has been rumored for months. Rocketdyne built and maintained the main engines used on the space shuttle fleet.

SpaceKSCBlog
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Posts: 112
From: Merritt Island, FL
Registered: Nov 2011

posted 03-15-2012 07:01 PM     Click Here to See the Profile for SpaceKSCBlog   Click Here to Email SpaceKSCBlog     Edit/Delete Message   Reply w/Quote
I would be endlessly amused if Elon Musk bought Rocketdyne and folded it into SpaceX.

Not very bright of UTC to put Rocketdyne on the market after business has slacked off. You sell high, not low.

Jay Chladek
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From: Bellevue, NE, USA
Registered: Aug 2007

posted 03-15-2012 07:20 PM     Click Here to See the Profile for Jay Chladek   Click Here to Email Jay Chladek     Edit/Delete Message   Reply w/Quote
My money would be on Boeing acquiring Rocketdyne, given it was originally part of North American Aviation (which is now part of Boeing). It would make the most sense to me in any event.

I don't know if it would be a smart idea for SpaceX to acquire a company entrenched in the old ways of doing business at this time since SpaceX's business model is a bit different from how other companies have done things. And considering SpaceX has yet to launch a successful test mission to the ISS, in my opinion they need a little extra capital as insurance, should something go wrong with Falcon 9 and Dragon.

As for selling high and buying low, that applies more to stocks than companies themselves as there may not be much choice in the matter. If Rocketdyne's business was literally booming, I doubt UTC would be trying to sell it, given that the company would be generating revenue. This in turn might have meant that UTC would have more of a chance of acquiring the company they wanted to get in addition to having Rocketdyne still in their fold (and growing bigger in the process).

With big space projects seemingly being on the back burner due to economic woes and budget cutbacks, UTC perhaps didn't feel comfortable with having Rocketdyne through several potentially lean years.

Robert Pearlman
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posted 03-15-2012 07:33 PM     Click Here to See the Profile for Robert Pearlman   Click Here to Email Robert Pearlman     Edit/Delete Message   Reply w/Quote
quote:
Originally posted by Jay Chladek:
My money would be on Boeing acquiring Rocketdyne...
That would mean them buying it back then, as Boeing sold Rocketdyne to UTC in 2005.

SpaceKSCBlog
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From: Merritt Island, FL
Registered: Nov 2011

posted 03-15-2012 08:23 PM     Click Here to See the Profile for SpaceKSCBlog   Click Here to Email SpaceKSCBlog     Edit/Delete Message   Reply w/Quote
quote:
Originally posted by Jay Chladek:
I don't know if it would be a smart idea for SpaceX to acquire a company entrenched in the old ways of doing business at this time since SpaceX's business model is a bit different from how other companies have done things.

Oh, I agree. I was just musing about how big a fuss it would make. They really don't need Rocketdyne's technology.

SpaceAholic
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From: Sierra Vista, Arizona
Registered: Nov 1999

posted 04-20-2012 10:28 AM     Click Here to See the Profile for SpaceAholic   Click Here to Email SpaceAholic     Edit/Delete Message   Reply w/Quote
Aviation Week reports rumors that Paul Allen, Burt Rutan and Mike Griffin are among several groups in the running to acquire Rocketdyne.
United Technologies Corp. (UTC) is expected to complete the sale of its Pratt & Whitney Rocketdyne rocket propulsion arm within the next two weeks as part of efforts to raise $3 billion to help finance its acquisition of Goodrich Corp.

Although the rocket maker declines to comment, Aviation Week understands final paperwork is in the process of being signed for the company’s sale to a private investment group. UTC originally put Pratt & Whitney Rocketdyne up for sale in 2011, and revived its offer in March following shareholder approval for the takeover of Goodrich on March 13.

Fellow U.S. rocket manufacturers Alliant Techsystems (ATK) and GenCorp’s Aerojet were originally thought to be the most likely potential bidders for PWR, which UTC bought from Boeing for $700 million in 2005. However, sources at the 28th National Space Symposium being held here tell Aviation Week that unnamed investors are in the process of clinching the deal.

Robert Pearlman
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posted 07-23-2012 09:28 AM     Click Here to See the Profile for Robert Pearlman   Click Here to Email Robert Pearlman     Edit/Delete Message   Reply w/Quote
GenCorp release
GenCorp Enters into Definitive Agreement to Acquire Pratt & Whitney Rocketdyne from United Technologies Corporation

GenCorp Inc., headquartered in Sacramento, California, announced today that it has signed a definitive agreement to acquire Pratt & Whitney Rocketdyne (PWR) from United Technologies Corporation for $550 million.

"We see great strategic value in this transaction for the country, our customers, partner supply base and our shareholders," GenCorp Chief Executive Officer Scott Seymour said. "The combined enterprise will be better positioned to compete in a dynamic, highly competitive marketplace, and provide more affordable products for our customers."

"In addition, this transaction almost doubles the size of our company and provides additional growth opportunities as we build upon the complementary capabilities of each legacy company that has enabled a generation of human space travel and national security launch services. We have the opportunity to build upon the proud heritage of our companies, the ability to create increased value for our customers and, best of all, to secure the future of both organizations," Seymour continued.

PWR, headquartered in Canoga Park, California, is a provider of high-value propulsion, power, energy and innovative system solutions used in a wide variety of government and commercial applications, including the main engines for the Atlas and Delta launch vehicles, missile defense systems and advanced hypersonic engines.

The purchase price of $550 million, which is subject to adjustment for working capital and other specified items, is expected to be financed with a combination of cash on hand and issuance of debt. The acquisition of PWR is conditioned upon, among other things, the receipt of required regulatory approvals and other customary closing conditions. Subject to the satisfaction of these conditions, the acquisition is expected to close in the first half of 2013. The transaction is expected to be accretive to earnings in the first year.

Citigroup Global Markets Inc. is acting as exclusive financial advisor to GenCorp for this transaction. In addition, Morgan Stanley Senior Funding LLC and Citigroup Global Markets Inc. are providing fully committed financing to support this transaction.

SkyMan1958
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Posts: 355
From: CA.
Registered: Jan 2011

posted 07-23-2012 05:50 PM     Click Here to See the Profile for SkyMan1958   Click Here to Email SkyMan1958     Edit/Delete Message   Reply w/Quote
I just looked up GenCorp. It consists of two main businesses, Aerojet and real estate. Given that it's located in California, I assume it's real estate has been in the tank for 3-4 years.

Of interest is that GenCorp got it's name from originally being General Tires. It divested out of tires — 20 years ago.

For what it's worth, its stock has gone up ~ 10 % since the announcement of plans to purchase PWR.

Jay Chladek
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From: Bellevue, NE, USA
Registered: Aug 2007

posted 07-24-2012 01:45 AM     Click Here to See the Profile for Jay Chladek   Click Here to Email Jay Chladek     Edit/Delete Message   Reply w/Quote
Wow, I hope no anti-monopoly accusations come from this given that the resulting company is going to be America's largest liquid fueled rocket engine manufacturer (ATK apparently being the other major US manufacturer of rocket motors, with their stuff being solid based).

Sure there are other engine manufacturers out there now (SpaceX for one), but this has got the potential of being a powerhouse. With the lack of a similar competitor could result in increased launcher development costs since there is no competitor to my knowledge with similar experience to bid against on liquid engines (unless one opens it up to international competition).

In other words, how do you put a contract out for bidding when there is only one contractor?

Robert Pearlman
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Posts: 27328
From: Houston, TX
Registered: Nov 1999

posted 06-14-2013 03:58 PM     Click Here to See the Profile for Robert Pearlman   Click Here to Email Robert Pearlman     Edit/Delete Message   Reply w/Quote
GenCorp release
GenCorp Completes Acquisition of Pratt & Whitney Rocketdyne From United Technologies Corporation

GenCorp Inc. (NYSE:GY) announced today that it has completed the acquisition of substantially all operations of the Pratt & Whitney Rocketdyne business (Rocketdyne) from United Technologies Corporation (NYSE:UTX). GenCorp will combine Rocketdyne with Aerojet-General Corporation (Aerojet), a wholly-owned subsidiary of GenCorp, and the combined businesses will operate as Aerojet Rocketdyne, Inc., headquartered in Sacramento, California.

As part of the Rocketdyne transaction, GenCorp will acquire UTC's 50% interest in the RD Amross joint venture following receipt of Russian regulatory approvals.

"Today is an exciting milestone in the history of GenCorp. This landmark transaction signals the transformation of two rocket propulsion companies into one extraordinary opportunity for the future," said GenCorp President and CEO, Scott Seymour. "The addition of Rocketdyne almost doubles the size of our company and provides additional growth opportunities as we build upon the complementary capabilities of each legacy company, including their talented people and innovative technologies."

"Combined, we bring decades of history that launched the first space age and put mission-critical technology into the hands of our warfighters," Seymour continued. "Our vision for the future is a shared one. We have the best workforce in the industry and we are committed to 100% safety and mission success as we continue to deliver performance, drive innovation and create opportunity. We will continue to be a leader in the next space age."

Aerojet-Rocketdyne's new website is Rocket.com.

ApolloEra
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Posts: 7
From: Woodland Hills, CA, USA
Registered: Feb 2013

posted 06-23-2013 08:33 PM     Click Here to See the Profile for ApolloEra   Click Here to Email ApolloEra     Edit/Delete Message   Reply w/Quote
Drove by the Rocketdyne Canoga Ave. facility today where the F-1 and J-2 were built... a new (temporary vinyl) sign is already in place.

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