Raising concerns about the loss of independent supply, Raytheon CEO Grey Hayes said the company plans to challenge Lockheed Martin’s proposed $4.4 billion takeover of Aerojet Rocketdyne with the U.S. government.
Aerojet Rocketdyne supplies the boost propulsion systems for all the current US nuclear weapon systems, including Trident II D5 missiles and the Minuteman III.[1] In 2018, Aerojet Rocketdyne secured an additional five-year contract for $20 million for solid boost technology that will be applied to the next generation of weapons systems.[2] Aerojet Rocketdyne is also a subcontractor on the new Ground Based Strategic Deterrent. [3] Aerojet Rocketdyne has also entered into a billion-dollar strategic agreement with Raytheon for propulsion for a range of missiles, including further hypersonic missile developments.[4]
Aerojet Rocketdyne is part of the Northrop Grumman GBSD team and has expanded its Advanced Manufacturing Facility (AMF) in Huntsville, Alabama to produce solid rocket motors for these weapons.[5] Aerojet Rocketdyne will develop the large solid rocket motor and the post-boost propulsion system and will also be responsible for testing of post-boost system components.[6]
This acquisition is perceived as providing Lockheed a substantial advantage in the area of propulsion, as Aerojet’s engines are already part of its supply chain.
The transaction is expected to close in the second half of 2021, though it is subject to the approval of the Defense Department and other regulatory authorities. In addition to the challenge by Raytheon, there are several other lawsuits pending. [7]
[1] Aerojet Rocketdyne, “Strategic Systems”, Website Aerojet Rocketdyne (https://www.rocket.com/defense/strategic-systems), viewed February 2020.
[2] U.S. Department of Defense, “Daily contract list – Contract FA9300-18-D-0002”, Website U.S. Department of Defense, 16 January 2018 (https://dod.defense.gov/News/Contracts/Contract-View/Article/1416414/), accessed February 2020.
[3] Stevenson, B., “Aerojet Rocketdyne begins development of new Arkansas rocket motor facility”, Jane’s Defence Industry, 26 April 2019. Available: https://www.janes.com/article/88106/aerojet-rocketdyne-begins-development-of-new-arkansas-rocket-motor-facility. Viewed January 2020; Aerojet Rocketdyne, “Aerojet Rocketdyne Expands Solid Rocket Motor Center Of Excellence At Arkansas Facility”, website Aerojet Rocketdyne (https://www.rocket.com/article/aerojet-rocketdyne-expands-solid-rocket-motor-center-excellence-arkansas-facility), accessed February 2021.
[4] Aerojet Rocketdyne, “2019 Annual Report”, available: https://ir.aerojetrocketdyne.com/static-files/eeac3738-afdd-4c4c-a417-aac182859420, viewed September 2020.
[5] Stevenson, B., “Aerojet Rocketdyne begins development of new Arkansas rocket motor facility”, Jane’s Defence Industry, 26 April 2019. Available: https://www.janes.com/article/88106/aerojet-rocketdyne-begins-development-of-new-arkansas-rocket-motor-facility. Viewed January 2020; Aerojet Rocketdyne, “Aerojet Rocketdyne Expands Solid Rocket Motor Center Of Excellence At Arkansas Facility”, website Aerojet Rocketdyne (https://www.rocket.com/article/aerojet-rocketdyne-expands-solid-rocket-motor-center-excellence-arkansas-facility), accessed February 2021.
[6] Aerojet Rocketdyne, “AEROJET ROCKETDYNE SELECTED TO POWER NATION’S NEXT GENERATION STRATEGIC DETERRENT”, website Aerojet Rocketdyne. 8 September 2020 (https://ir.aerojetrocketdyne.com/news-releases/news-release-details/aerojet-rocketdyne-selected-power-nations-next-generation), last viewed February 2021; Aerojet Rocketdyne, “Aerojet Rocketdyne Holdings, Inc. Annual Report on Form 10-K For the Year Ended December 31, 2020”, website Aerojet Rocketydyne (https://ir.aerojetrocketdyne.com/node/25406/html), viewed February 2021.
[7] Aerojet Rocketdyne, “Aerojet Rocketdyne Holdings, Inc. Annual Report on Form 10-K For the Year Ended December 31, 2020”, website Aerojet Rocketydyne (https://ir.aerojetrocketdyne.com/node/25406/html), viewed February 2021.