L3Harris Technologies has announced the sale of a majority stake in its civilian space propulsion unit to private equity firm AE Industrial Partners for a total of $845 million. This strategic move aligns with the company’s focus on enhancing its presence in the military space market.
Chairman and CEO Christopher Kubasik stated, “L3Harris is strongly committed to the Department of War’s vision for a faster, more agile defense industrial base while remaining laser-focused on driving value for our shareholders and customers.” The sale involves a 60 percent stake in the propulsion unit, allowing L3Harris to retain a 40 percent share in a business that has been pivotal in developing technologies for NASA and civil space initiatives.
The propulsion unit’s offerings include advanced systems such as nuclear power technologies aimed at future lunar and Martian missions, as well as the RL10 engine which powers the upper stage of the United Launch Alliance’s Vulcan heavy lifter. Notably, the RS-25 rocket engine, a key propulsion system for NASA’s Space Launch System under the Artemis mission, is excluded from this transaction.
New Entity to Be Named Rocketdyne
AE Industrial Partners, recognized for its investments in commercial space firms like York Space Systems and Firefly, will rebrand the acquired entity as Rocketdyne. This name pays homage to the historical significance of the original Rocketdyne business, founded in 1955 as a subsidiary of North American Aviation.
Kirk Konert, managing partner at AE Industrial, expressed enthusiasm about the acquisition, stating, “Rocketdyne is more than just a company; it is the birthplace of U.S. rocket propulsion.” He emphasized that the transaction will rejuvenate a pioneer in space and national defense technology, fostering a new hybrid model that combines the stability of a national defense prime with the innovative approach of a specialized investor.
The new entity plans to modernize the production of the RL10 engine by implementing contemporary manufacturing practices, aiming to enhance efficiency and innovation in space propulsion technology.
This sale marks a significant shift for L3Harris as it concentrates its resources and efforts on military applications, reinforcing its commitment to supporting defense initiatives and aligning with core mission priorities outlined by the Department of War. As the landscape of space technology evolves, L3Harris remains dedicated to driving advancements that bolster national security while continuing to provide value to its shareholders.
