Washington, D.C. – The American Economic Liberties Project released the following statement in response to news that defense contractor Aerojet Rocketdyne, is soliciting acquisition offers from potential suitors, including private equity firms.

“While Aerojet’s attempt to sell itself to private equity is not surprising, it does present an immediate risk to our national security,” said Lucas Kunce, National Security Director at the American Economic Liberties Project. “Aerojet has long been an engineering company that makes real products with low margins.  Private equity and hedge funds don’t invest in companies like Aerojet for their low to mid-single-digit sales growth.  They take stakes in these companies to strip them for parts or force their sale, often weakening the company and consolidating the industry.  We’ve seen it over and over again across industries and when it happens in the defense industry, it’s a national security threat. Particularly in this case, where Aerojet is the only remaining independent solid rocket maker.”

Aerojet was recently an acquisition target for Lockheed-Martin, a deal that died when the FTC voted unanimously to sue to block the acquisition over defense industrial base consolidation concerns.

“Antitrust enforcers must remain vigilant regarding a potential Aerojet acquisition just as they must remain vigilant regarding any further defense industrial base consolidation,” added Kunce. “Private equity firms care about one thing and one thing only: turning a quick profit.  And too often it is at the cost of national security.”

Learn more about Economic Liberties here.

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The American Economic Liberties Project works to ensure America’s system of commerce is structured to advance, rather than undermine, economic liberty, fair commerce, and a secure, inclusive democracy. Economic Liberties believes true economic liberty means entrepreneurs and businesses large and small succeed on the merits of their ideas and hard work; commerce empowers consumers, workers, farmers, and engineers instead of subjecting them to discrimination and abuse from financiers and monopolists; foreign trade arrangements support domestic security and democracy; and wealth is broadly distributed to support equitable political power.