L3Harris Completes $845 Million Rocketdyne Transaction

LHX completed the sale of a roughly 60% majority stake in its commercial Space Propulsion and Power Systems business to private equity firm AE Industrial Partners in a transaction valued at $845 million. The deal, first announced in January 2026, formally closed on August 4.

The divested unit revives the standalone Rocketdyne name, tracing back to the propulsion business originally founded within North American Aviation in 1955. L3Harris retains an approximately 40% stake in the new entity, preserving exposure to Rocketdyne's growth while shedding majority ownership and consolidation costs.

The business produces rocket engines, in-space propulsion systems and spacecraft power technologies, including the RL-10 upper-stage engine and electric thrusters used across exploration and satellite missions. L3Harris's RS-25 main engine program, which powers NASA's Space Launch System, was excluded from the sale and remains fully owned by L3Harris.

The transaction lets L3Harris redeploy the $845 million in proceeds toward its core defense, space sensing and communications businesses while retaining upside in Rocketdyne through its minority stake. Investors could watch whether L3Harris directs proceeds toward debt reduction or further portfolio moves, and how AE Industrial Partners scales the newly independent Rocketdyne.

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