Aerojet Rocketdyne buys missile-target maker and may provide satellite launches

In a deal that could have implications for the satellite launch business, rocket engine manufacturer Aerojet Rocketdyne has acquired leading missile-target developer Coleman Aerospace for $15 million in cash.

The deal, which is expected to close Friday, will allow Aerojet Rocketdyne — a unit of El Segundo-based Aerojet Rocketdyne Holdings Inc. — to expand into the missile-targets business, as well as offer commercial launch options for the potentially lucrative small-satellite launch market, said Tyler Evans, company vice president of defense advanced programs.

“We’ve been looking at small- to medium-payload launch for several years,� he said. “There’s a lot more small- to medium-sized payloads that are ready than platforms to take them affordably.�

After the acquisition is completed, Coleman will be renamed Aerojet Rocketdyne Coleman Aerospace Inc.

Founded in 1980, Orlando-based Coleman Aerospace has a reputation for building and integrating air- and ground-launched ballistic missile targets for the Pentagon’s Missile Defense Agency. The firm also provides suborbital launch vehicles, payload launch services and systems integration and engineering.

In 2001, Coleman was acquired by defense contractor L3 Technologies.

Aerojet Rocketdyne does not plan to cut jobs at Coleman as part of the acquisition. Evans said the company wants to expand Coleman’s missile-targets business, which will continue to operate at its existing location in Florida.

“This company has a tremendous reputation with the Missile Defense Agency,� he said. “We’re quite pleased with how the company is operating.�

Aerojet Rocketdyne Holdings will also take over Coleman’s new integration and test facility lease at Cape Canaveral Air Force Station in Florida. That facility is set to officially open Friday.

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