Leading aerospace products manufacturer
) recently completed the acquisition of the Pratt & Whitney
Rocketdyne business from diversified business conglomerate
United Technologies Corp.
) for an undisclosed amount. Post-acquisition, GenCorp will
combine Rocketdyne with its wholly-owned subsidiary
Aerojet-General Corporation. The combined entity will operate
under a new name - Aerojet Rocketdyne, Inc., with its
headquarters in Sacramento, CA.
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With the acquisition, GenCorp will also procure a 50% ownership
stake in RD AMROSS, a Cocoa, Florida-based joint venture between
Pratt & Whitney Rocketdyne and NPO Energomash of Khimki,
Russia. The acquisition nearly doubles the size of GenCorp and is
likely to offer economies of scale with complimentary product
Furthermore, the acquisition facilitates Aerojet to have a
virtual monopoly on medium- and large-sized, liquid-fueled rocket
engines. On the other hand, the divestiture enables United
Technologies to focus more on its core aerospace and commercial
businesses. The transaction, therefore, is a win-win deal for
both the participating companies.
Based in Hartford, Conn., United Technologies provides high-end
technology products and services to the building systems and
aerospace industries worldwide. The company is a diversified
business conglomerate serving various end markets such as
aerospace, defense and commercial construction. The business
diversification allows the company to remain profitable during
tough economic times.
The operations of the company are primarily classified into two
principal businesses: commercial and aerospace. Under its
commercial business, the company has Otis and the UTC Climate,
Controls & Security division, which combined the former
Carrier and UTC Fire & Security divisions. The aerospace
business of the company consists of Sikorsky aircraft and the UTC
Propulsion & Aerospace Systems, which includes UTC Aerospace
Systems and Pratt & Whitney divisions.
United Technologies presently has a Zacks Rank #3 (Hold). Other
notable companies in the industry include
Compass Diversified Holdings
), each carrying a Zacks Rank #2 (Buy).