BOCA RATON, Fla. - AE Industrial Partners LP, a private investment firm in Boca Raton, Fla., focused on technologies, announced it has signed a definitive agreement to acquire a controlling interest in the Space Propulsion and Power Systems business of L3Harris Technologies.
The $845 million transaction encompasses business units across five U.S. locations that have developed upper-stage rocket engines used in national security, civil, and commercial missions, as well as in-space propulsion, nuclear power, and avionics assets.
L3Harris will retain a minority investment interest and continue to act as a strategic partner to the business. AE Industrial plans to restore and use the Rocketdyne name for the acquired business in recognition of its heritage and longstanding innovation in space propulsion technology.
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"Rocketdyne is more than just a company. It is the birthplace of U.S. rocket propulsion," said Kirk Konert, managing partner at AE Industrial. "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 scale of a national defense prime with the innovation of a specialized investor. By taking the historic engine, the RL10, and applying modern manufacturing discipline, we will honor its design while revolutionizing the production line."
Partnership plans
The partnership between AE Industrial and L3Harris also aims to accelerate the development of future propulsion technologies, including nuclear propulsion, which is expected to play a key role in Mars exploration and operations in cislunar space. Company officials said maintaining U.S. leadership in space will depend on leveraging top engineering talent to achieve superior speed and maneuverability.
"Our strategy is to identify critical technologies and build them into world-class companies," said Jon Lusczakoski, principal at AE Industrial. "Rocketdyne's unparalleled heritage offers the perfect foundation for this mission. We see a unique opportunity to apply our experience scaling space systems to this iconic business, ensuring Rocketdyne remains a critical pillar of national security while evolving to meet future demands."
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Following the announcement, L3Harris Technologies said it has reorganized its business structure from four to three segments to better align its portfolio with future warfare requirements.
The three business segments are Space and Mission Systems, led by Sam Mehta; Communications and Spectrum Dominance, led by Jon Rambeau; and Missile Solutions, led by Ken Bedingfield. Bedingfield will also continue to serve as senior vice president and chief financial officer, and Ed Zoiss has been appointed vice president of engineering and innovation.
Space and Mission Systems will integrate satellite and payload capabilities, including missile warning and defense, with maritime, air special missions, and other global defense and civil government programs. Communications and Spectrum Dominance will combine the company's capabilities in resilient communications and electronic warfare, while Missile Solutions will unite propulsion, hypersonics, and other advanced missile technologies.
