Rocket sale

Boeing is to sell its Commercial Airplanes division to Onex Corporation and its Rocketdyne business to Pratt and Whitney.

Boeing has sold its Commercial Airplanes facilities to Onex Corporation and its Rocketdyne business to Pratt and Whitney.

The $900 million Onex transaction includes Boeing’s Commercial Airplanes facilities and assets in Wichita, Kansas and Tulsa and McAlester, Oklahoma.

Onex will form a new company to operate the facilities, which will continue to operate under the leadership of Jeff Turner, currently vice president and general manager of the Boeing Commercial Airplanes Wichita Division, who will be the new company’s CEO.

The two companies have signed single-source supply agreements that will provide Onex with a base of revenue providing Boeing with parts currently produced by the Wichita/Tulsa Division. In addition, the Wichita/Tulsa operations will continue as a major partner on the 787 Dreamliner.

Boeing announced in April 2004 that it was studying the possible sale of its plants in Wichita, Tulsa and McAlester.

Approximately 9,000 Commercial Airplanes employees currently work at the Wichita, Tulsa and McAlester sites.The facilities currently supply Boeing with fuselage and other structural components for the 737, 747, 767 and 777 programs, and the division is a supplier partner on the 787 Dreamliner.

Boeing Integrated Defense Systems operations in Wichita and Oklahoma are not included in the transaction.

In a seperate unrelated move, Boeing has announced that is also to sell its Rocketdyne Propulsion & Power business to Pratt & Whitney for approximately $700 million in cash.

Rocketdyne is primarily a rocket engine developer and builder, and provides booster engines for the Space Shuttle and the Delta family of expendable launch vehicles, as well as propulsion systems for missile defense systems. The divestiture includes sites and assets in California, Alabama, Mississippi and Florida. Approximately 3,000 people support the operations at those sites.