Lockheed Martin will acquire Aerojet Rocket dyne for $ 4.4 billion

Lockheed Martin

The 3D printed chamber of the RL10 engine passes the heat test engine. Aerojet Rocket dyne plans to use technologies such as auxiliary production to develop the RL10C-X engine, which is now supported by a re-arrangement with Air Force James Tyler, president and chief executive officer of Lockheed Martin, said the acquisition would expand the company’s capacity in terms of space and hypersonic technology.

The largest U.S. defense contractor announced Lockheed Martin on December 12th. At 20, he signed a contract to acquire rocket engine and missile maker Aerojet Rocket dyne for $ 4.4 billion. James Tyler, president and chief executive of Lockheed Martin, said the acquisition would allow the company to expand its presence in space and hypersonic technology. He said Rocketdyne’sAerojet transfer systems are already key components of Lockheed Martin’s supply chain in a number of areas.

“The proposed acquisition is significant engine expertise in the Lockheed Martin portfolio,” says Rocketdyne’s 2019 Aerojet revenue was approximately $ 2 billion. Headquartered in El Segundo, California, the company employs approximately 5,000 people. Aerojet Rocket dyne was formed in 2013 through the merger of Aerojet and Pratt & Whitney Rocketdyne from GenCorp.

The company produces tactical and strategic missiles for theDepartment of Defense. Its rocket pack includes the RL-10, which is used at the top level of United Launch Alliance’s Delta 4 and Atlas 5 launch vehicles (Lockheed Martin owns 50% of the United Launch Alliance), and RS-25 engines for NASA’s space launch system. Aerojet Rocket dyne is working on qualifying for a new version called the RL10C-X, which will feature key components created using 3D printing technology.

With financial backing from the Pentagon, the company developed a new rocket engine called the AR-1, which was supposed to be the main engine for the new Vulcan ULA launch vehicle, but ULA ultimately chose the BE-4 from Blue Origin. It requires regulatory approval and has not yet been approved by Aerojet Rocket dyne shareholders. Lockheed Martin said a transition team will be formed to facilitate integration and ensure customer and employee continuity.

Lockheed-Martin has always had some very interesting ideas about melting hydrogen, which seems to be the only field that Blue Origin intends to play. I think they will both go in general and compete with each other, it will depend a lot on any course taken by the new administration of the president in terms of NASA’s monthly exploration plans.

Moreover, this $ 5 billion cash package is very generous to Aerojet shareholders – shareholders of the most innovative rocket engine manufacturer in the United States, which was part of the decline of US space (along with Boeing and Lockheed Martin) until NASA helped an external competitor. muscles of its entrance. For America, there is NO added value – no. In fact, it increases density among those who have been among the most innovative.

There was a strong argument for forcing Boeing and Lock Mart to abandon ULA for national interest for years, as they blatantly thwarted ULA’s innovation – and deliberately stole money for other reasons, and that they hindered its flexibility. Now, with this counter (from an American perspective; and ultimately, we funded those two companies …) a construction that throws money into AJ’s shareholders rather than, say, advanced research and development. Lock Mart controls a lot more – and there’s a real reason for ULA’s forced sales solely on the basis of trust laws. This is essential for the national good.

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