Jan. 16, 2026 — Redmond, Wash. L3Harris Technologies agreed to sell a controlling stake in its Space Propulsion & Power Systems business — excluding the RS-25 rocket engine production — to AE Industrial Partners for an enterprise value of $845 million, a transaction that will revive the Rocketdyne name at this city’s historic 80-acre rocket factory among operations at five U.S. sites, according to company announcements and local reporting.
The deal, announced earlier this month and expected to close in the second half of 2026 pending regulatory approvals, leaves L3Harris with approximately 40% ownership in the resulting joint venture.
The business includes upper-stage engines like the RL-10, in-space propulsion, nuclear power systems, and avionics used in national security, civil, and commercial missions, as detailed in the AE Industrial Partners announcement.
The Redmond facility, the Seattle area’s oldest continuously operated dedicated rocket production site, traces its roots to Rocket Research Co., founded in 1960 by former Boeing engineers and relocated here in 1968.
It has passed through multiple owners, including Rockor, Olin Aerospace, Primex Technologies, General Dynamics, Aerojet, and Aerojet Rocketdyne, before L3Harris acquired it in its 2023 $4.7 billion purchase of Aerojet Rocketdyne. The site employs more than 400 people and produces propulsion systems for NASA missions, such as thrusters for the Orion spacecraft on Artemis 2 and components for Mars rovers.
L3Harris described the sale as aligning its portfolio with Department of Defense priorities for a more agile defense industrial base.
“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, L3Harris chairman and CEO. “This transaction further aligns the L3Harris portfolio with DoW core mission priorities.”
AE Industrial Partners emphasized the Rocketdyne heritage and plans to scale production.
“Rocketdyne is more than just a company, it is the birthplace of U.S. rocket propulsion,” said Kirk Konert, managing partner at AE Industrial Partners. “This transaction will not only modernize and give new life to a pioneer of space and national defense technology, but it will also create a new hybrid model of agile collaboration… By taking the historic engine – the RL10 – and applying modern manufacturing discipline, we will honor its design while revolutionizing the production line.”
The transaction marks L3Harris’ first major restructuring following the Aerojet Rocketdyne acquisition, as noted in coverage by SpaceNews, Payload Space, and Aviation Week.
