Aerojet Rocketdyne is looking to acquire United Launch Alliance (ULA), a joint venture (JV) of Boeing and Lockheed Martin, for around $2bn.
The company’s board member and Steel Partners chairman and CEO Warren Lichtenstein reportedly held talks with ULA president Tory Bruno and other executives regarding a possible deal last month.
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Aerojet Rocketdyne spokesman Glenn Mahone was quoted by Reuters as saying that the company would not comment on any of its negotiations.
Formed in 2005, ULA provides spacecraft launch services to military and spy satellites.
The JV has successfully launched more than 90 satellites into orbit aboard its RD-180 engines-powered Atlas 5 rocket.
A source told The Wall Street Journal that Aerojet’s bid is an all-cash offer and there is no guarantee that a deal can be reached.
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By GlobalDataIf a transaction is finalised, it will be subject to review by Pentagon authorities and an official decision could be made by next week.
Aerojet intends to use its new AR-1 engine on ULA’s Atlas 5; however, ULA is currently considering Blue Origin’s new engine.
ULA has been facing stringent competition from Elon Musk’s Space Exploration Technologies (SpaceX) over rocket launches.
The US Air Force recently unveiled plans to end its $1bn contract with ULA and the intention to choose SpaceX to launch military and spy satellites.
Image: An Atlas V rocket lift-off. Photo: courtesy of Nasa / Tom Farrar, Kevin O’Connell.
