GenCorp Inc., parent of Rancho Cordova rocket-maker Aerojet, said Friday that it has completed its acquisition of the Pratt & Whitney Rocketdyne business from United Technologies Corp.
GenCorp said it will combine Rocketdyne with Aerojet, and the combined businesses will operate as Aerojet Rocketdyne Inc., headquartered in Sacramento. The local company's purchase of an old rival is expected to double GenCorp's business.
GenCorp announced its intention to buy Rocketdyne in a $550 million deal in July 2012, setting off a prolonged, regulatory-laden process.
The Federal Trade Commission, which oversaw the acquisition, said it was concerned about a monopoly because both Aerojet and Rocketdyne have government contracts for Liquid Divert and Attitude Control Systems, or LDACS, technology for rocket flight stabilization and steering.
In response, GenCorp said it would look into selling its LDACS business. But the Pentagon intervened, saying a sell-off by GenCorp would hurt production and national security, and the FTC approved the deal despite its misgivings.
"Today is an exciting milestone in the history of GenCorp. This landmark transaction signals the transformation of two rocket propulsion companies into one extraordinary opportunity for the future," said Scott Seymour, GenCorp president and CEO.
Call The Bee's Mark Glover, (916) 321-1184.