L3Harris Technologies is close to selling a 60% stake in a portfolio of space and propulsion assets to AE Industrial Partners, according to a report by Reuters. The portfolio is valued at $845m, with AE Industrial expected to pay more than $500m, while L3Harris would retain a 40% minority stake.
The assets include the RL-10 second-stage rocket engine, used on United Launch Alliance’s Vulcan rocket, alongside in-space propulsion systems for satellite manoeuvring, space launch electronics, and nuclear power technologies. L3Harris will retain full ownership of the RS-25 rocket engine, which is used on NASA’s Space Launch System for the Artemis programme.
The deal aligns with AE Industrial’s strategy of consolidating space and defence technologies, adding to its existing investments including York Space Systems, Redwire, and Firefly Aerospace. The transaction is not expected to affect L3Harris’ involvement in the emerging Golden Dome missile defence initiative.
L3Harris plans to use proceeds to invest in missile and rocket motor production capacity and for general corporate purposes, including potential debt reduction. The transaction is expected to close in the second half of 2026, subject to customary conditions.
