AE Industrial Partners has agreed to acquire a controlling interest in L3Harris’ Space Propulsion and Power Systems business, at a total enterprise value of US$845 million.
The transaction is expected to close in the second half of 2026, subject to regulatory approvals and the satisfaction of customary closing conditions. L3Harris’ RS-25 rocket engine business is excluded from the transaction. Following completion, L3Harris will retain an approximately 40% ownership stake in the new space technology business alongside AE Industrial.
“L3Harris is strongly committed to the Department of War’s (DoW) vision for a faster, more agile defence industrial base while remaining laser-focused on driving value for our shareholders and customers,” said Christopher Kubasik, Chairman and Chief Executive Officer of L3Harris. “This transaction further aligns the L3Harris portfolio with DoW core mission priorities.”
L3Harris has consistently pursued both traditional and non-traditional partnerships to support business growth and advance critical technologies. AE Industrial’s prior investments in the space sector include Firefly Aerospace, RedWire Space and York Space Systems, underlining the group’s experience in national security and space exploration markets.
