---
title: "L3Harris sells majority stake in space propulsion business to AE Industrial Partners"
url: https://www.voxelmatters.com/l3harris-sells-majority-stake-in-space-propulsion-business-to-ae-industrial-partners-for-845-million/
date: 2026-01-08
modified: 2026-01-08
lang: en
author: "Davide Sher"
description: "L3Harris Technologies is divesting a controlling interest in its Space Propulsion and Power Systems division to AE Industrial Partners in a transaction valued at $845 million. The deal, expected to..."
categories:
  - "Aerospace AM"
  - "AM for Space"
  - "Defense"
tags:
  - "insights"
image: https://www.voxelmatters.com/wp-content/uploads/2026/01/aerojet-rocketdyne-gmlrs-hero-1-640x362.jpg
word_count: 471
---

# L3Harris sells majority stake in space propulsion business to AE Industrial Partners

[L3Harris Technologies](https://www.voxelmatters.directory/company/l3harris/) is divesting a controlling interest in its Space Propulsion and Power Systems division to AE Industrial Partners in a transaction valued at $845 million. The deal, expected to close in the second half of 2026 pending regulatory approval, will leave L3Harris with roughly a 40% ownership stake in the new venture. The sale does not include [the company's RS-25 rocket engine program](https://www.voxelmatters.com/3d-printing-nasa-tests-rs-25-sls-rocket-engine/).

Christopher Kubasik, Chairman and Chief Executive Officer at L3Harris Technologies, said the divestiture supports the U.S. Department of War’s goal of a “faster, more agile defense industrial base,” while allowing the company to focus on core mission priorities.

The Space Propulsion and Power Systems unit—[part of the portfolio L3Harris gained through its $4.7 billion acquisition of Aerojet Rocketdyne in 2022](https://www.voxelmatters.com/l3harris-to-acquire-aerojet-rocketdyne/)—produces propulsion systems and related technologies for civil and defense applications. AE Industrial Partners, a private equity firm with multiple investments in the aerospace and national security sectors, is expected to revive the [Rocketdyne](https://www.voxelmatters.directory/company/aerojet-rocketdyne/) name following the acquisition.

## Modernization and expansion under L3Harris

Before the sale, Aerojet Rocketdyne—operating under L3Harris—completed several milestones under a $215.6 million cooperative agreement with the U.S. Department of Defense (DoD) to expand and modernize its manufacturing capabilities. The effort, launched in 2023, focuses on increasing production of solid rocket motors for the Javelin, Stinger, and Guided Multiple Launch Rocket System missile programs.

As part of the initiative, the company began construction of a new 6,040-square-meter (65,000-square-foot) GMLRS production facility at its Camden, Arkansas, site, consolidating three existing buildings to improve manufacturing efficiency. It also started shifting Javelin and Stinger propulsion manufacturing to its Orange County, Virginia, site, aligning each location with specific areas of expertise.

“Our building design approach incorporates automation and robotics throughout the cast and assembly buildings to maximize the efficiency and flow through the manufacturing process,” said Byron Lee, Aerojet Rocketdyne’s program manager overseeing the modernization effort. The company is also advancing its digital transformation work by integrating business and manufacturing systems through a cyber-secure Industrial Internet of Things (IIoT) network.

![](https://www.voxelmatters.com/wp-content/uploads/2024/05/aerojet-rocketdyne-hypersonic-render-scaled.jpg)Aerojet Rocketdyne delivers a broad range of capabilities to support hypersonic production, including ramjets, scramjets, solid rocket motors, warheads and missile defense technologies. (Credit: Aerojet Rocketdyne artist concept)
Aerojet Rocketdyne is further expanding inert component production for GMLRS and Javelin in Huntsville, Alabama, where it recently leased a 35,200-square-meter (379,000-square-foot) facility in JetPlex Industrial Park. The new capacity will support increased production for key national defense programs.

## AE Industrial’s expanding space portfolio

AE Industrial’s previous space-related investments include Firefly Aerospace, [RedWire Space](https://www.voxelmatters.directory/company/redwire/), and York Space Systems. These holdings align with the firm’s strategy to expand in both commercial and defense space markets.

Jefferies LLC served as the exclusive financial advisor to L3Harris on the transaction.

Headquartered in Melbourne, Florida, L3Harris Technologies develops defense and space systems spanning the space, air, land, sea, and cyber domains.