GenCorp buying P&W Rocketdyne

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SACRAMENTO, July 23 (UPI) -- Propulsion company Pratt and Whitney Rocketdyne is being acquired from parent company United Technologies Corporation by GenCorp Inc.

GenCorp, which has headquarters in California, said the purchase price is $500 million but subject to adjustment for working capital and other specified items.

The sale, expected to close in the first half of next year, is expected to be financed with a combination of cash on hand and issuance of debt.

"We see great strategic value in this transaction for the country, our customers, partner supply base and our shareholders," GenCorp Chief Executive Officer Scott Seymour said. "The combined enterprise will be better positioned to compete in a dynamic, highly competitive marketplace and provide more affordable products for our customers.

"In addition, this transaction almost doubles the size of our company and provides additional growth opportunities as we build upon the complementary capabilities of each legacy company that has enabled a generation of human space travel and national security launch services."

Pratt and Whitney Rocketdyne provides the main engines for the space program launch vehicles, such as the Atlas and Delta rockets, missile defense systems and advanced hypersonic engines and other propulsion products.