In a significant development, L3Harris Technologies has entered into an agreement to divest a majority stake in its Propulsion and Power Systems division to AE Industrial Partners for a substantial sum of $845 million. This strategic move, announced on January 5, 2026, enables L3Harris to realign its portfolio of businesses with the primary concerns of the United States. The transaction, which is expected to close in the second half of 2026, will see AE Industrial acquire a 60% stake in the new space technology business, while L3Harris will retain a 40% ownership stake.
Notably, the RS-25 rocket engine business will be excluded from the sale. The deal encompasses business units across five locations in the US, which have been instrumental in developing upper-stage rocket engines for national security, civil, and commercial missions for over six decades. These units also specialize in in-space propulsion, nuclear power, and avionics assets.
AE Industrial plans to revive the iconic "Rocketdyne" name for the acquired business, paying homage to its rich heritage and innovative contributions to space propulsion technology. According to the company's vision, modern manufacturing disciplines will be applied to the historic RL10 engine, ensuring its design is honored while revolutionizing the production line.
L3Harris Technologies has agreed to sell a majority stake in its Propulsion and Power Systems division to AE Industrial Partners for $845 million.Other references and insights: Check here
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