L3Harris sells majority space propulsion stake to AE Industrial for $845 million

AE Industrial closed the acquisition and relaunched the business as Rocketdyne, led by CEO Kristin Houston, while L3Harris retained about a 40% minority stake and excluded its RS-25 rocket engine operations.

Summary

L3Harris Technologies completed the sale of a majority stake in its commercial space propulsion, power and electronics businesses to AE Industrial Partners in a transaction valued at $845 million, and AE Industrial has relaunched the business as Rocketdyne. L3Harris retained about a 40% minority stake and remains a strategic partner, while its RS-25 rocket engine operations were excluded from the deal. Kristin Houston was named Chief Executive Officer of the standalone company. AE Industrial said it plans to invest in Rocketdyne's core capabilities, including RL10 rocket engine technology and manufacturing, in-space propulsion thrusters, and nuclear power and energy systems for space applications. L3Harris said it expects to use proceeds to invest in facilities and advanced technologies, while cautioning that statements about proceeds, capacity and demand are forward-looking and subject to risks and uncertainties.

Terms & Concepts
  • RS-25 rocket engine: A liquid-fueled rocket engine used on NASA's Space Shuttle and Space Launch System programs; L3Harris said these operations were excluded from the transaction.
  • RL10 rocket engine: A long-running upper-stage rocket engine program that AE Industrial said Rocketdyne will invest in by upgrading its technology and manufacturing.
  • In-space propulsion thrusters: Propulsion systems used to maneuver spacecraft after launch; AE Industrial said it plans to increase Rocketdyne's production of these systems.