Melbourne-based L3Harris acquired the vast rocket engine company Aerojet Rocketdyne in 2023, but on Monday announced it was selling a controlling interest in the majority of those operations to private investment firm AE Industrial Partners.
The Boca Raton-based company plans to revive the Rocketdyne name for the business “in recognition of its heritage and longstanding innovation within space propulsion technology,” according to a press release.
The deal calls for it to acquire a 60% controlling interest in L3Harris’ Space Propulsion and Power Systems at a value of $845 million. L3Harris Technologies will retain a 40% minority share.
The transaction is not expected to close until the second half of 2026, and is subject to regulatory approval.
A big portion of the deal is the RL-10 manufacturing facilities located in Palm Beach County. The RL-10 engines have been used for 60 years, including for the upper stages of United Launch Alliance’s Vulcan and remaining Atlas V rockets.
“Rocketdyne is more than just a company, it is the birthplace of U.S. rocket propulsion,” said Kirk Konert, managing partner at AE Industrial. “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, combining the stability and power of a national defense prime with the innovation of a specialized investor.”
The firm states it is focused on technologies and services considered critical to both aerospace and national and economic security
“By taking the historic engine – the RL-10 – and applying modern manufacturing discipline, we will honor its design while revolutionizing the production line,” Konert said.
The RL-10 facilities are a big part of five manufacturing locations across the U.S. responsible for not only the upper stage engines, but also in-space propulsion, nuclear power and avionics.
Not part of the deal are the RS-25 engines, which were built for the Space Shuttle Program but are now used on NASA’s Space Launch System’s core stage for the Artemis missions.
However, single RL-10 engines are still used on the SLS’s Interim Cryogenic Propulsion Stage, which flew on Artemis I and will be used on both Artemis II and III. Future Artemis missions could potentially use the larger Exploration Upper State that would require four RL-10 engines.
“L3Harris is strongly committed to the Department of War’s vision for a faster, more agile defense industrial base while remaining laser-focused on driving value for our shareholders and customers,” said L3Harris Chairman and CEO Christopher Kubasik in a press release. “This transaction further aligns the L3Harris portfolio with DoW core mission priorities.”
The company recently opened a $100 million satellite manufacturing facility in Palm Bay to support Trump’s plans for the Golden Dome missile defense system.
The partnership between the two companies looks to further pursue propulsion technologies, including nuclear propulsion, which will be needed for future exploration missions to Mars, the release stated.
“Our strategy is to identify critical technologies and build them into world-class companies,” said Jon Lusczakoski, principal at AE Industrial. “Rocketdyne’s unparalleled heritage offers the perfect foundation for this mission.”
The Palm Beach facilities employ about 500 people and shares a campus with Pratt & Whitney.
“We see a unique opportunity to apply our deep experience in scaling space systems to this iconic business — ensuring Rocketdyne remains a critical pillar of national security while aggressively evolving to meet the demands of the future,” Lusczakoski said.