Report: Northrop Grumman Nears Deal to Acquire Orbital ATK

Here’s an interesting report from Reuters:

Northrop Grumman Corp (NOC.N) neared an agreement to buy Orbital ATK Inc (OA.N) in a transaction that could be announced as soon as Monday, according to a person familiar with the transaction.

The source requested anonymity because the deal has not been disclosed publicly.

Northrop Grumman declined to comment and Orbital did not immediately respond to a request for comment. The Wall Street Journal reported the deal earlier on Sunday.

Northrop is valued at $46.5 billion, while Orbital is valued at $6.3 billion. The acquisition price could not be immediately determined, but could exceed $7.5 billion if a typical premium was attached to it, Wall Street Journal said.

Editor’s Note:  If Northrop buys Orbital ATK, it will inherit the Pegasus XL booster and the L-1011 Stargazer aircraft that is used to launch it. Northrop is also is involved through Scaled Composites in the Stratolaunch program, which will also use Pegasus XL boosters.

The cost of maintaining one aging jetliner built in 1974 has got to be fairly high. Then you’ve got Stratolaunch which is a massive, one-of-a-kind aircraft. So, would you want to maintain both of them to launch the same booster?

  • Terry Stetler

    But acquiring Orbital ATK Northrop Grumman also obtains the Cygnus cargo spacecraft and its CRS contracts, the Antares launcher, and any plans that Orbital ATK had for the Next-generation Launch System (aka Ares I Lite/Liberty) which mainly uses ATK solids for the lower stages.

  • Andrew Tubbiolo

    I was just getting used to “Oat-K” so what shall I used now “Oat-K N.G” Or Oat-K Next Gen”? Are they still great for breakfast, and heart healthy? Perhaps it’s time so start thinking up some acronyms or anagrams for future consolidations?

  • I think this will be a bad deal for NG/OATK. They get into other business (Newport News shipyard) that they don’t understand. Orbital + ATK made sense and has turned out well. Aerojet + Rocketdyne didn’t make sense and has been a mess.