SpaceX acquires its parachute vender out of bankruptcy for $2.2 million

In a rare move, SpaceX has acquired one of its vendors for $2.2 million after the parachute manufacturer filed for Chapter 11 bankruptcy earlier this month. Named Pioneer Aerospace, the company built and sold parachute systems to both SpaceX, NASA, and the Department of Defense.

SpaceX acquires its own vender

A reason why SpaceX has been able to move so fast is because since its inception, the company has pushed to build as much as it can in house. This leads to few outside suppliers and when there is one, you know that component is extremely important and SpaceX has yet to figure out how to do it better by itself.

It seems like parachutes were one of those items SpaceX had to go outside of the company to get for its Dragon spacecraft. Pioneer Aerospace, was that privilege vender to supply parachute systems for SpaceX’s Cargo and Crew Dragon 2 vehicles, according to the company’s website.

Pioneer also produced parachute for various NASA missions and serviced the defense and aviation markets too. However, it didn’t seem to be enough to sustain a business as it merged with Aviation Safety Resources, another parachute manufacturer, in 2022. The two then filed for bankruptcy on November 1.

SpaceX’s acquisition of Pioneer was approved by a judge on November 22, this was first reported by The Information. In total, SpaceX paid $2.2 million for the company and now brings this skill in house.

Pioneer Aerospace was founded in 1938 and became the leading manufacturer of parachutes in World War 2. It later went on to build the test “Parasail” system for landing NASA’s Gemini spacecraft. Pioneer would also make parachutes for the Space Shuttle, the Galileo probe, Mars Pathfinder, and the Spirit and Opportunity Mars rovers.

Pioneer has locations in Florida, Kentucky, Connecticut, and Mississippi.

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SpaceX moving closer to a full on aerospace contractor?

When SpaceX was founded by Elon Musk in 2002, its sole business was building and launching rockets. It quickly entered the LEO resupply business with NASA and now offers commercial crewed flights to space, satellite internet, and satellite manufacturing.

SpaceX’s last acquisition was SWARM back in 2021 which lead to Starlink being able to offer cell service with T-Mobile. Now SpaceX has an opportunity to expand its offerings to include parachute systems. Although, SpaceX could also just absorb it into its Dragon operations and only provide its services to itself.

Other than the price, we don’t have any specifics to the deal. Also SpaceX, of course, hasn’t commented on the purchase, maybe someone will get to interview Musk and ask what his plan is for Pioneer.

SpaceX, however, is much more than just a commercial launch provider now, and if it chooses to, could really do whatever it wants in the aerospace market.