By Colin Kellaher

 

Raytheon Co. on Thursday said it struck a five-year, $1 billion deal to buy propulsion systems for its Standard Missile products from Aerojet Rocketdyne Holdings Inc.

The Waltham, Mass., defense giant said the shift to multi-year contracting from an annual basis will help its suppliers and provide savings to the U.S. Defense Department.

Raytheon said the agreement with Aerojet represents a supply-chain centerpiece of multi-year Standard Missiles contracts that the company has recently received.

El Segundo, Calif.-based Aerojet has supported one or more variants of Raytheon's Standard Missile program for more than 30 years.

Shares of Aerojet were recently up 9.1% to $41.33.

 

Write to Colin Kellaher at colin.kellaher@wsj.com

 

(END) Dow Jones Newswires

March 26, 2020 11:31 ET (15:31 GMT)

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