Boeing sells Rocketdyne
Posted: Wed, Feb 23, 2005, 8:39 AM ET (1339 GMT)
The Boeing Company announced late Tuesday that it was selling Rocketdyne, its rocket engine subsidiary, to the owners of Pratt & Whitney. Boeing said United Technologies agreed to purchase Rocketdyne for $700 million in cash in a deal that had been rumored to be in the works for several weeks. United Technologies owns Pratt & Whitney, which also manufactures rocket engines. While UTC plans to combine the two rocket manufacturers, there is little overlap since Rocketdyne primarily focuses on larger engines, such as the Space Shuttle Main Engine and RS-68 used on the Delta 4, while Pratt & Whitney's business is primarily with smaller engines, most notably the RL10 upper-stage engine. This lack of overlap will limit the number of layoffs or closings that might otherwise be associated with such a sale. Pratt & Whitney also has a partnership with a Russian company to manufacture the Russian RD-180 engine used on the Atlas 5, although domestic production of that engine has yet to begin. Boeing officials said the sale will help it become more horizontally, not vertically, integrated, and that it will continue to contract with Rocketdyne for engines.
The Boeing Company announced late Tuesday that it was selling Rocketdyne, its rocket engine subsidiary, to the owners of Pratt & Whitney. Boeing said United Technologies agreed to purchase Rocketdyne for $700 million in cash in a deal that had been rumored to be in the works for several weeks. United Technologies owns Pratt & Whitney, which also manufactures rocket engines. While UTC plans to combine the two rocket manufacturers, there is little overlap since Rocketdyne primarily focuses on larger engines, such as the Space Shuttle Main Engine and RS-68 used on the Delta 4, while Pratt & Whitney's business is primarily with smaller engines, most notably the RL10 upper-stage engine. This lack of overlap will limit the number of layoffs or closings that might otherwise be associated with such a sale. Pratt & Whitney also has a partnership with a Russian company to manufacture the Russian RD-180 engine used on the Atlas 5, although domestic production of that engine has yet to begin. Boeing officials said the sale will help it become more horizontally, not vertically, integrated, and that it will continue to contract with Rocketdyne for engines.
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