L3Harris Technologies today announced that AE Industrial Partners has agreed to acquire a controlling interest in L3Harris’ Space Propulsion and Power Systems business at a total enterprise value of $845 million.

Transaction closing is expected in the second half of 2026, subject to obtaining regulatory approvals and satisfaction of other customary closing conditions. L3Harris’ RS-25 rocket engine business is excluded from the sale. L3Harris will retain a ~40% ownership stake in the new space technology business with AE Industrial.

“L3Harris is strongly committed to the Department of War’s (DoW) vision for a faster, more agile defense industrial base while remaining laser-focused on driving value for our shareholders and customers,” said Christopher Kubasik, Chairman and CEO, L3Harris. “This transaction further aligns the L3Harris portfolio with DoW core mission priorities.”

L3Harris has consistently pursued traditional and non-traditional partnerships to drive business growth and advance critical technologies. Previous space investments of AE Industrial include Firefly Aerospace, RedWire Space and York Space Systems, demonstrating the group’s experience with national security and space exploration markets.

Jefferies LLC acted as exclusive financial advisor to L3Harris.