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Rocket Lab USA Inc. (NASDAQ:RKLB) confirmed on Wednesday that it has been selected as a successful bidder and is finalizing an asset purchase agreement for the purchase of certain Long Beach California aerospace production and manufacturing assets from Virgin Orbit Holdings (VORB).
The launch company’s successful bid of approximately $16.1M includes the assumption of the lease to Virgin Orbit’s +144K square foot headquarters and manufacturing complex in Long Beach, California and certain production assets, machinery, and equipment located there.
The successful bid does not include the purchase of Virgin Orbit’s Boeing 747 aircraft, launch vehicles or mobile launch assets for its rockets, or other Virgin Orbit facilities, inventory and assets.
The purchase is still subject to the approval of the United States Bankruptcy Court for the District of Delaware administering Virgin Orbit’s Chapter 11 bankruptcy cases and other customary closing conditions.
Looking ahead, the combination of the new assets with Rocket Lab’s (RKLB) existing production, manufacturing, and test capabilities is expected to advance the production of the Neutron launch vehicle. Rocket Lab (RKLB) will not be integrating Virgin Orbit’s launch system within its existing launch services.
Rocket Lab CEO and Founder, Peter Beck, says: “Rocket Lab is a global industry leader in launch, and our new, larger rocket Neutron will bring added reliability, reusability, and innovation to the launch sector.
“With Neutron’s design and development well-advanced, this transaction represents a capital expenditure savings opportunity to augment our production capability to bring Neutron to the launch pad quickly to serve our customers and their future success,” stated Rocket Lab (RKLB) CEO Peter Beck.
Shares of Rocket Lab (RKLB) rose 3.06% in premarket trading on Wednesday.
