General Dynamics has sold its Redmond-based space-propulsion division to Aerojet-General of California for $90 million in cash.
No layoffs are planned at General Dynamics' Space Propulsion Systems, which employs about 300 people. The unit will stay in Redmond, Aerojet officials said yesterday.
General Dynamics sold the unit because it didn't match its primary business of selling small jets, battle information systems and amphibious combat vehicles, said Scott Neish, vice president and general manager of the Redmond unit.
"From a strategic standpoint, we're a better fit with Aerojet than General Dynamics," Neish said. "We both are mainstream propulsion companies with the same technology and customers."
The space-propulsion division makes small rocket engines used to power spacecraft after they are launched. Aerojet, a Sacramento-based subsidiary of GenCorp, is an aerospace and defense contractor specializing in defense, armaments, and missile and space propulsion.
Aerojet made the deal to strengthen its propulsion business, said communications representative Susan List.
Kristina Shevory: 206-464-2039 or firstname.lastname@example.org.