The RL10 Propulsion System. Photo: L3Harris

AE Industrial Partners has acquired the controlling stake in the space propulsion business of L3Harris, formerly known as Aerojet Rocketdyne. AE Industrial said in a Jan. 5 announcement it plans to use the name Rocketdyne for the business. 

L3Harris said in a statement the sale is for a total enterprise value of $845 million. L3Harris will retain an approximately 40% ownership stake in the new space technology business with AE Industrial and continue to act as a strategic partner to the business. L3Harris previously acquired Aerojet Rocketdyne for $4.7 billion, closing the acquisition in mid-2023. 

The transaction is expected to close in the second half of 2026 and is subject to regulatory approval.

According to current guidance from L3Harris, the propulsion business is set to report $2.8 to $2.9 billion of revenue in 2025, marking 12% growth year-over-year. 

AE Industrial Partners said the deal includes business units across five locations in the U.S. Rocketdyne develops upper-stage rocket engines used in national security, civil and commercial missions as well as in-space propulsion, nuclear power, and avionics assets. 

“Rocketdyne is more than just a company, it is the birthplace of U.S. rocket propulsion,” said Kirk Konert, managing partner at AE Industrial, in a statement. “This transaction will not only modernize and give new life to a pioneer of space and national defense technology, but it will also create a new hybrid model of agile collaboration, combining the stability and power of a national defense prime with the innovation of a specialized investor.

Konert’s statement said the company plans to modernize production for the RL10 engine, which is used on the Atlas V rocket and the upper stage of the Vulcan Centaur rocket. 

AE Industrial also plans to work with L3Harris for Rocketdyne to accelerate the development of nuclear propulsion for Mars exploration and cislunar activities. The Trump Administration’s recently released space policy called for the development of nuclear reactors on the Moon and in orbit, targeting a lunar surface reactor ready for launch by 2030.

This acquisition also adds to AE Industrial’s portfolio of space companies which includes Firefly Aerospace, Redwire Space, and York Space Systems.