Space Race 2.0 Blue Origin Cerberus and Textron eyeing North Alabamas ULA in aerospace power play

Space Race 2.0: Blue Origin, Cerberus, and Textron eyeing North Alabama’s ULA in aerospace power play

Reports from the Wall Street Journal this week suggest that entities such as Blue Origin, led by Jeff Bezos, and private equity firm Cerberus are closing in on a potential deal to acquire United Launch Alliance (ULA), located in Decatur, Alabama. This information unveils a potential shake-up in the aerospace industry for North Alabama.

Lockheed Martin and Boeing currently share equal ownership of ULA, known for manufacturing launch vehicles, including those for Amazon.com’s satellite internet network, Kuiper. The intrigue around ULA has also attracted attention from business jet manufacturer Textron. Despite the reported interest there is still some uncertainty as to the definitive bidding price remains elusive.

Tory Bruno, CEO of ULA, expressed a positive outlook on the company and the potential acqusition back when rumors circulated in October.

“If I were buying a space business, I’d go look at ULA,” said Bruno in an interview with Bloomberg News.

ULA has encountered setbacks in the development of its new rocket, Vulcan Centaur, scheduled for its inaugural launch in January, which will carry Astrobotic’s Peregrine lunar lander. Blue Origin’s BE-4 engine will power the spacecraft’s first stage, adding another layer of complexity to the potential acquisition.

The broader context reveals a growing trend of private equity firms expressing interest in space companies with significant exposure to government contracts, an arena currently dominated by Elon Musk’s SpaceX. The U.S. Space Force, as reported in November by CNBC, has allocated 21 launches to SpaceX and ULA, amounting to approximately $2.5 billion. Meanwhile, the joint venture between Boeing and Lockheed Martin has secured 11 missions valued at $1.3 billion.

As the plot thickens around ULA’s potential acquisition, key players like Blue Origin, Cerberus, Textron, and Lockheed Martin have maintained a tight-lipped stance, with no immediate responses to Reuters’ requests for comments. Boeing, on the other hand, declined to provide any official statement on the matter. This silent yet substantial interest from diverse entities hints at the dynamic shifts underway in the space exploration and technology sector.

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