Rocket Lab swoops on Virgin Orbit assets
AUCKLAND: Sir Richard Branson’s pain is Peter Beck’s gain.
Rocket Lab said in an SEC filing yesterday it was the successful bidder for Virgin Orbit assets, including the firm’s 13,400sq m headquarters and manufacturing centre in Long Beach, California.
Rocket Lab will pay $US16.1 million ($NZ26 million) for the assets, subject to the approval of the United States Bankruptcy Court for the District of Delaware, which is administering Virgin Orbit’s Chapter 11 case.
The two companies are neighbours in Long Beach, where Rocket Lab has its corporate headquarters and one of its manufacturing facilities.
The deal does not include a private jet for Mr Beck.
Rocket Lab’s bid did not include Virgin Orbit’s Boeing 747, which Sir Richard named Cosmic Girl.
The aircraft carried Virgin Orbit’s rocket, attached to its belly, to 10,000m before it fired.
A series of failed launches — including a final effort in February this year — meant Virgin Orbit’s ‘‘Start Me Up’’ rocket failed to reach orbit and instead crashed into the Atlantic Ocean, destroying its cargo of nine satellites.
Stratolaunch, founded by the late Microsoft cofounder Paul Allen, picked up the modified plane for just $US17 million.
Rocket Lab will not adopt any launch technology from Sir Richard’s firm.
Mr Beck said taking over Virgin Orbit’s digs would help speed the development of his company’s much larger Neutron rocket, due for its first test flight next year.
‘‘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. Securing the lease to the Conant Facility adds to our existing presence in Long Beach and provides colocated engineering, manufacturing, and test capabilities for our Neutron team,’’ Mr Beck said.
Virgin Orbit, which filed for Chapter 11 bankruptcy protection on April 4, after failing to raise more funding, officially ceased operations yesterday.
The auction for its assets raised a total of $US36 million.
The company was spun out of Sir Richard’s space tourism venture, Virgin Galactic, in 2017. It went public in December 2021 at a $3 billion valuation. Its market cap had fallen to $US60 million by the time of its April 4 Chapter 11 filing.
Virgin Orbit charged clients $US20 million per launch, or around three times the cost of Rocket Lab’s Electron. Mr Beck’s company recently said it would charge $US50 million$US55 million per Neutron launch.
Mr Branson reportedly lost $US1.8 billion on the venture. Forbes puts his wealth at $US4.7 billion.
Rocket Lab has made a series of acquisitions since its August 2020 Nasdaq listing, which raised $US777 million — including SolAero, a New Mexico maker of solar components for space, for $US80 million; Advanced Solutions, a Colorado maker of mission simulation systems, and navigation and control solutions, for $US40 million. —
Cosmic Girl,