What space businesses is L3Harris selling?

L3Harris is selling a portfolio of space and propulsion businesses, including the RL-10 rocket engine and in-space propulsion systems.

Who is buying the L3Harris space assets?

AE Industrial Partners, a private equity firm specializing in aerospace and defense, is nearing a deal to acquire a 60% stake.

When will the L3Harris space deal close?

The transaction is expected to close in the second half of 2026, pending customary closing conditions.

Home / Business and Economy / L3Harris Sells Space Unit for Over $500M

L3Harris Sells Space Unit for Over $500M

5 Jan

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Summary

L3Harris nears deal for 60% stake in space/propulsion unit.
AE Industrial Partners to acquire majority stake for over $500 million.
Deal valued at $845 million, L3Harris retains 40% ownership.

L3Harris Sells Space Unit for Over $500M

L3Harris Technologies is reportedly close to divesting a 60% stake in a significant portfolio of space and propulsion businesses to private equity firm AE Industrial Partners. This strategic move allows the defense contractor to concentrate on its core national security operations, shedding certain NASA-related ventures.

The transaction, valued at an enterprise value of $845 million, will see AE Industrial Partners pay over $500 million for its majority stake. L3Harris will maintain a 40% ownership in the businesses, which include vital components like the RL-10 rocket engine used in the Vulcan rocket and in-space propulsion systems.

Expected to conclude in the second half of 2026, this divestiture is part of L3Harris' broader strategy to streamline operations and enhance its missile-focused capabilities. Proceeds from the sale are earmarked for investments in rocket motor and missile production capacity, as well as general corporate purposes and potential debt reduction.