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L3Harris Technologies announced the completion of a $845 million deal to sell a majority stake in its commercial space propulsion, power, and electronics businesses to AE Industrial Partners. The transaction excludes the company’s RS-25 rocket engine operations, which remain under L3Harris ownership. The proceeds will be directed toward expanding facilities and advancing technologies to address growing demand in the sector. L3Harris will retain a 40% ownership stake in the newly formed Rocketdyne business under AE Industrial Partners’ umbrella.

The sale marks a strategic shift for L3Harris, focusing its resources on core defense and national security technologies while divesting non-core commercial space assets. AE Industrial Partners will now oversee the commercial space propulsion, power, and electronics businesses under the Rocketdyne brand. The transaction is expected to enhance operational efficiency and accelerate innovation in the commercial space industry. L3Harris emphasized that the proceeds will fund critical investments to meet future growth opportunities in defense and aerospace markets.

L3Harris Technologies, a global aerospace and defense company, confirmed the deal’s closure after months of negotiations. The company’s RS-25 rocket engine operations, a key component of NASA’s Space Launch System, were explicitly excluded from the sale. L3Harris will continue to operate these engines as part of its broader defense and space portfolio. The transaction aligns with L3Harris’ strategy to prioritize mission-critical technologies while monetizing non-core assets.

The $845 million enterprise value reflects the market valuation of L3Harris’ commercial space propulsion, power, and electronics businesses. AE Industrial Partners, a private equity firm specializing in aerospace and defense, will lead the newly formed Rocketdyne entity. L3Harris retains a minority stake, ensuring continued influence in the business’s strategic direction. The deal underscores the evolving landscape of the commercial space industry, with private equity firms increasingly investing in high-growth aerospace sectors.