A 10-Year Savings of US$1 Billion Seen by Aerojet Rocketdyne

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Aerojet Rocketdyne was formed after the acquisition of Pratt & Whitney Rocketdyne by GenCorp Inc. The statement was given last Sunday after promising the US government US$1.2 billion in savings from the deal over the next decade. In the later phases of the merger, a possible savings of US$2 billion will yet to transpire.

In the next five years, the company is expected to double its revenue. This was according to Aerojet Rocketdyne President, Warren Boley in an interview told Reuters. The result will be from the combined estimate of US$1.7 billion for both GenCorp unit Aerojet and Rocketdyne.

US authorities approved GenCorp's acquisition of Rocketdyn on Friday after a year-long review. The new company will make its official announcement in the air show and another one during the employee meeting.

While the deal was under review, Boley said that GenCorp recently sent a letter to Pentagon's Defense Contracts Management Agency and the Defense Contract Audit Agency. The content of the letter was about the savings that would be generated from the collaboration of the two firms.

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