Northrop Grumman to buy missile maker Orbital for $7.8 billion

https://www.reuters.com/article/us-orbital-atk-m-a-northrop-grumman/northrop-grumman-to-buy-missile-maker-orbital-for-7-8-billion-idUSKCN1BT0ZZ

U.S. defense contractor Northrop Grumman Corp said on Monday it would buy Orbital ATK Inc for about $7.8 billion in a deal that gives it greater access to lucrative government contracts and expands its arsenal of missile defense systems and space rockets.

The all-cash transaction is the biggest in the defense sector in two years and comes as North Korea’s missile and nuclear weapons threats grow, heightening tensions with the United States and its allies.

“Clearly, as we watch what’s happening around our globe, the rather rapid advance of some of our potential adversaries is quite concerning,” Northrop Chief Executive Wes Bush said on a call with analysts.

Although Northrop already has a significant presence in payloads, it has not had launcher capability, an area that Orbital brings for both space and missile defense, Vertical Research Partners analyst Robert Stallard said on Monday.

Orbital has contracts with NASA and the U.S. Army. The Dulles, Virginia-based company is one of the two firms hired by NASA to fly cargo to the International Space Station under an initial contract worth up to $3.1 billion.

Northrop’s purchase of Orbital would help sharpen its focus on small space systems, launch vehicles, missiles and munitions.

The deal also comes ahead of planned upgrades of U.S. ballistic systems, which are expected to drive demand for missiles, potentially benefiting companies such as Northrop.

Shares of Aerojet Rocketdyne, a direct competitor with Orbital ATK in several space and missile businesses, rose 6.7 percent to $30.24, as the higher valuation for Orbital boosted Aerojet shares.

https://en.wikipedia.org/wiki/David_W._Thompson

Thompson is the son of Robert H. (born 1919) and Nancy W. (born 1923) Thompson. He grew up in New Jersey, Georgia, Massachusetts and South Carolina, graduating from Dorman High School in Spartanburg, SC in 1972. He attended the Massachusetts Institute of Technology from 1972 to 1976, graduating with a B.S. degree in Aeronautics and Astronautics. He attended the California Institute of Technology from 1977 to 1978, from which he received a M.S. degree in Aeronautics and Jet Propulsion. During college and graduate school, he worked as a summer engineering intern at NASA’s Langley Research Center, Johnson Space Center and the Jet Propulsion Laboratory.

Early in his career, Thompson worked as an aerospace engineer at NASA’s Marshall Space Flight Center in Huntsville, AL from 1978 to 1979, during which time he conceived the original plan for a commercial space company that would focus on privately managed, privately funded rocket development and manufacturing. To pursue this idea, he attended Harvard Business School from 1979 to 1981, graduating with an M.B.A. degree and forming friendships with classmates and future business partners Bruce W. Ferguson and Scott L. Webster. Following business school, Thompson worked in strategic planning at Hughes Aircraft Company in Los Angeles, California, from 1981 to 1982.

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look at thompsons bio..ticking most boxes..including the jpl..he co-founded orbital..

“Orbital has contracts with NASA and the U.S. Army. The Dulles, Virginia-based company is one of the two firms hired by NASA to fly cargo to the International Space Station under an initial contract worth up to $3.1 billion.”

big player..note the Saturn rings in the logo..

401

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~ by seeker401 on September 21, 2017.

One Response to “Northrop Grumman to buy missile maker Orbital for $7.8 billion”

  1. need more kimmies + kim chis

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