Boeing to Sell Rocketdyne Unit for $700 Million

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Boeing Co. reached an agreement today to sell its Canoga Park-based Rocketdyne Propulsion & Power division to Pratt & Whitney, one of the world’s largest manufacturers of aircraft engines, for $700 million in cash.


Pending regulatory approval, the transaction includes plants in California, Alabama, Mississippi and Florida that employ about 3,000 people, but will not result in layoffs or closures here, according to John Mitchell, a Rocketdyne spokesman.


Pratt & Whitney, which is owned by United Technologies Co., designs, manufactures and services aircraft engines, space propulsion systems and industrial gas turbines out of Hartford, Conn. and is expected to keep Rocketdyne intact.


The move follows a series of sales by Boeing starting last year of businesses manufacturing aerospace parts to cut costs and avoid layoffs and concentrate on aircraft design and assembly. Sales to Boeing account for about a third of Rocketdyne’s revenues. Once the deal is consummated, Mitchell said, the former parent will continue to purchase propulsion systems from Rocketdyne.

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