NASA’s No. 2 Rocket Supplier Is For Sale, But No One Wants It

[ad_1]

The United Launch Alliance (ULA) joint venture, NASA’s second-largest rocket supplier, has been up for sale for more than ten months. Problem, neither SpaceX, nor Blue Origin, nor Rocket Lab are interested. Which of the “new space” companies will agree to take it back?

Boeing is struggling to win the hearts of NASA, after the difficulties encountered on its Starliner capsule. However, its activity in the aerospace industry is not limited to its subsidiary Boeing Defense, Space & Security. Since 2006, the American has had a joint venture with Lockheed Martin Space, called the United Launch Alliance (ULA). Founded 17 years ago, it is NASA’s second largest rocket supplier, developing the Vulcain Centaur and Atlas V launchers.

Time has passed and the two companies behind the United Launch Alliance now want to get rid of it. Since 2023, it has been for sale, and should have found a buyer this year 2024. Problem, competitors in the aerospace sector did not rush and did not raise the stakes. So much so that today, according to the Reuters agency, only one name appears among the contenders, and the acquisition price would not be high: between 2 and 3 billion dollars.

Boeing no longer wants the United Launch Alliance

The United Launch Alliance launched Vulcain Centaur to replace Atlas V, no longer depend on the supply of Russian engines, and to hold out against the arrival of numerous new launchers that have appeared since the 2010s by new companies in the new spacewith SpaceX leading the way. However, ULA is not in the tough either, with 1.3 billion dollars generated in 2022, and a rate of launches which accelerated in 2024 after a low in 2023.

However, it would seem that the unpopularity of its sale symbolizes the advance that new aerospace companies have gained in terms of business model, resources and technologies. From a price point of view, it became impossible to compete and Boeing preferred to retract, and favor the development of its own technologies, without the help or supervision of Lockheed Martins Space.

Faced with the 98 rockets launched in 2023 by SpaceX, it is difficult to compete. Moreover, Elon Musk’s company sees no competition or takeover interest in ULA. Blue Originthe space company launched by Amazon founder Jeff Bezos, is also disinterested in the United Launch Alliance, despite a contract signed between the two companies which makes Blue Origin the supplier of the BE-4 engines for the Vulcain rocket .

Sierra Space, the only one interested in the United Launch Alliance

According to Reutersthe only one interested in a takeover of the United Launch Alliance in 2024 would be Sierra Space. This is the subsidiary of the private defense company Sierra Nevada Corporation, which supplies NASA and the US Army with systems for modifying aircraft and integrating various equipment, particularly for space. A key player therefore, but perhaps too small to tackle a takeover file like that of United Launch Alliance.

Founded more than 60 years ago, the company is still a privately held company, which certainly couldn’t sink $3 billion into ULA without going through an IPO. In any case, this is the opinion of Rich Smith, an editorialist of the media The Motley Foolspecialized in investment, which still saw a feasibility if the Sierra Nevada Corporation decided to buy ULA and then go public directly.

In this case, investors could make sense, namely to look at a company of the size and capabilities of SpaceX on the stock market. Unless new space really have enough to bury former American actors?