Martin Marietta Reportedly to Acquire Part of GE Aerospace Division

Martin Marietta Corp. is planning to acquire a significant portion of General Electric Co.’s aerospace division, defense industry sources told the Washington Post Sunday night.

The transaction could nearly double the size of the aerospace conglomerate, based in Bethesda, Md., and make it the leading contractor in space-based intelligence and missile defense programs, such as the Strategic Defense Initiative, known as “Star Wars.”

Terms of the acquisition were not available. GE’s aerospace division had revenue last year of $5.3 billion, nearly as large as Martin Marietta’s total 1991 revenue of $6.1 billion. Profit on GE’s aerospace division was $655 million last year--more than twice Martin Marietta’s corporate profit of $313.2 million.

Spokesmen for both companies declined to comment Sunday night. However, sources close to both companies said an announcement would be made here today.

It was not clear how much of the GE unit Martin Marietta plans to buy, but GE Aerospace’s businesses complement two of Martin Marietta’s key businesses: its missiles and electronics business in Orlando, Fla., and its astronautics and space division in Denver.

GE’s aerospace division, based in King of Prussia, Pa., produces satellites, missile guidance systems and warship radar systems, and has the contract to help the Pentagon design the SDI system of orbiting spy satellites and space-based missiles intended to protect against missile attacks.

GE, whish also owns the NBC television network, is the largest private employer in the Philadelphia area. It is based in Fairfield, Conn.