Rocketdyne reestablished as independent space propulsion firm after $845 M L3Harris sale

L3Harris Technologies completed the sale of a majority stake in its commercial space propulsion, power and electronics businesses to private‑equity firm AE Industrial Partners for $845 million. The deal revives the historic Rocketdyne name as a standalone company, with AE Industrial holding a 60 % interest and L3Harris retaining a 40 % non‑controlling stake and a strategic partnership.

The transaction excludes the RS‑25 engine program, which remains fully owned by L3Harris and continues to support NASA’s Space Launch System. Rocketdyne will focus on launch‑vehicle engines such as the RL10 upper‑stage engine, spacecraft propulsion, space electronics and nuclear power systems. Kristin Houston, who led the businesses while they were part of L3Harris, has been appointed chief executive of the new Rocketdyne.

L3Harris will keep its missile propulsion, solid‑rocket motor and hypersonic technology businesses, as well as the RS‑25 work, while using proceeds to invest in facilities and advanced technologies to meet growing demand. The restructuring has significant implications for Huntsville, Alabama, where many defense and NASA programs are based.