HARTFORD, Conn., 22 February 2005. United Technologies Corp. today announced it has entered into an agreement with The Boeing Company to acquire its Rocketdyne Propulsion & Power business for cash totaling approximately one times sales -- $700 million. The purchase is subject to appropriate regulatory clearance.
When the purchase is finalized, Rocketdyne will combine with Pratt & Whitney's space propulsion unit, based in West Palm Beach, Fla. UTC's Hamilton Sundstrand unit will work with Pratt & Whitney to ensure a smooth transition of the space power and energy segment. The divestiture includes sites and assets in California, Alabama, Mississippi and Florida. Approximately 3,000 people support the operations at those sites.
Headquartered in Canoga Park, Calif., Rocketdyne had 2004 sales of nearly $700 million and is a leader in applied power, from aerospace propulsion systems to space-borne electrical power. Its programs include the Space Shuttle Main Engine (SSME); the RS-27A Delta booster; the RS-68 engine that powers the Delta IV, and a variety of advanced propulsion programs. In energy systems, Rocketdyne is developing products that would enable terrestrial-bound "clean energy" as well as space-bound systems that would create new levels of power and maneuverability for vehicles in space.
"UTC companies are at the cutting edge of technology in all business segments and we believe Rocketdyne's rich heritage of technology excellence and innovation is a great addition to our portfolio," said Louis R. Chenevert, president of Pratt & Whitney. "We look forward to working with Boeing, NASA, the Department of Defense, and other customers to continue the high level of service that Rocketdyne has always provided."
Pratt & Whitney Space Propulsion has been providing advanced technology solutions to commercial, government and military customers for more than four decades.
Products include the RL10, the space industry's most reliable, safe and high-performing upper stage rocket engine used on the Boeing Delta and Lockheed Martin Atlas rockets, high-pressure turbopumps for the Space Shuttle's Main Engines (SSME) and the RD-180 booster engine, offered by RD AMROSS, a partnership between Pratt & Whitney and NPO Energomash of Russia, for the Atlas III and V programs.
"This transaction makes sense for Boeing, for Rocketdyne's employees and customers, and for Pratt & Whitney," said Jim Albaugh, president and chief executive officer of Boeing Integrated Defense Systems. "The acquisition of Rocketdyne by Pratt & Whitney will benefit our customers, as Pratt & Whitney is a company dedicated to the business of propulsion and is in the best position to build upon Rocketdyne's proud heritage. I have great confidence that the proud legacy of Rocketdyne from Mercury to Saturn V to the Space Shuttle will be in good hands. The sale also reinforces our strategic business aim to be horizontally -- not vertically -- integrated."
Pratt & Whitney is a world leader in the design, manufacture and service of aircraft engines, space propulsion systems and industrial gas turbines.
Hamilton Sundstrand designs and manufactures life support, electric power and other systems for a variety of space applications, including the NASA space suit, Space Shuttle and International Space Station.
United Technologies, based in Hartford, Conn., is a diversified company that provides high technology products and services to the commercial building industry and the military and commercial aerospace industry. In addition to Chubb, Otis, Carrier and UTC Power, United Technologies' companies include Pratt & Whitney, Hamilton Sundstrand and Sikorsky Aircraft. For more information, see www.utc.com.