L3Harris Divests Space Propulsion Unit to AE Industrial Partners

L3Harris Technologies, Inc. has agreed to sell its space propulsion business to private equity firm AE Industrial Partners. The transaction will see the return of the Rocketdyne brand name, a historic identifier in the aerospace sector, which will be adopted by the newly independent entity.

The business being divested manufactures liquid rocket engines and electric propulsion systems. These systems are utilized for national security space missions as well as commercial launch services. By separating this unit, L3Harris continues to refine its portfolio, focusing on its core reporting segments: Space & Mission Systems (SMS), Communications & Spectrum Dominance (CSD), and Missile Solutions (MSL).

AE Industrial Partners focuses on investments in the aerospace, defense, and government services sectors. The acquisition of the propulsion unit represents an expansion into the hardware side of the space economy for the firm.

Shares of L3Harris were trading near $286.12 during the session, reflecting a slight decline of approximately 0.24% compared to the previous close. The company maintains a market capitalization of roughly $53.28 billion.

What to watch

• Official closing date of the transaction and transfer of assets.
• Future contract awards for the Rocketdyne entity under new ownership.
• Updated financial guidance from L3Harris regarding the impact of the divestiture.

Source: original release