L3Harris Technologies plans to sell a controlling interest in its Space Propulsion and Power Systems business to private equity firm AE Industrial Partners in a deal valued at $845 million.
Under the agreement, AE Industrial will acquire a majority stake in the unit, while L3Harris will retain an ownership interest of approximately 40 percent.
The transaction is expected to close in the second half of 2026, pending regulatory approvals and customary closing conditions.
The deal excludes L3Harris’ RS-25 rocket engine program, which supports NASA’s Space Launch System.
The Space Propulsion and Power Systems business develops propulsion, power generation, and related subsystems used across civil, commercial, and national security space missions.
L3Harris did not disclose financial performance details for the unit.
Broader Portfolio Rebalancing
The divestment is part of L3Harris’ broader effort to rebalance its portfolio following several acquisitions and asset sales in recent years.
Since the 2019 merger of L3 Technologies and Harris Corporation, the company has sought to streamline operations and focus on core defense and communications capabilities.
AE Industrial Partners specializes in aerospace, defense, and government services investments.
Its space-focused portfolio includes Firefly Aerospace, Redwire Space, and York Space Systems, which support launch, satellite, and space infrastructure programs for both commercial and government customers.
Jefferies LLC is serving as L3Harris’ exclusive financial advisor for the transaction.
