L3Harris Technologies announced the sale of a controlling stake in its Space Propulsion and Power Systems division to AE Industrial Partners. The deal, valued at $845 million, is expected to close in the second half of 2026. Upon regulatory approval, AE Industrial Partners, a private equity firm based in Boca Raton, Florida, will gain control of 60% of the new company, which will be named Rocketdyne, reviving the historic name originally associated with North American Aviation, founded in 1955. Meanwhile, L3Harris will retain the Aerojet Rocketdyne brand.
Kirk Konert, managing partner at AE Industrial, stated that Rocketdyne’s primary focus will be on developing the RL10 liquid rocket engine, used as the upper stage engine for NASA’s Space Launch System (SLS) and ULA’s Vulcan and Atlas 5 rockets.
Konert noted that Rocketdyne’s expansion plans include participating in Artemis program-related missions, with efforts in energy, avionics, and infrastructure propulsion sectors. Rocketdyne possesses the expertise and reputation required to meet the ambitious timelines of the Artemis program, with AE Industrial ready to support the U.S. and its allies in this mission.
Industry Impact and AE Industrial’s Strategic Role
L3Harris’ transaction with AE Industrial Partners represents a broader trend among aerospace companies of refining their portfolios to focus on core offerings amid intensifying global competition. This strategic shift is crucial for maintaining leadership in a rapidly evolving industry.
AE Industrial has been strategically consolidating its presence in the aerospace sector, investing in complementary technologies to leverage the burgeoning space economy. This acquisition aligns with their plan to support international expansion and broaden their footprint in space infrastructure and propulsion technologies.
