AE Industrial Partners has acquired a controlling interest in the Space Propulsion and Power Systems business of L3Harris Technologies, in a deal that will see the storied “Rocketdyne” name restored for the acquired operations.
The transaction includes business units across five U.S. locations that have produced upper-stage rocket engines used in national security, civil, and commercial missions for more than six decades. The acquired portfolio also includes in-space propulsion, nuclear power, and avionics assets, expanding the platform beyond legacy engine programs.
L3Harris will retain a minority investment and continue as a strategic partner, positioning the business as a hybrid model that combines a defense prime’s stability with the operational and manufacturing playbook of a specialized investor. AE Industrial said it plans to modernize the business and apply updated manufacturing discipline to core engine programs, including the RL10, which has long served as a workhorse upper-stage engine across multiple launch vehicles and mission types.
The partnership is also intended to accelerate development of next-generation propulsion technologies, including nuclear propulsion, which AE Industrial framed as increasingly important for cislunar operations and eventual Mars exploration. Financial terms were not disclosed.
AE Industrial said the acquisition aligns with its strategy of investing in aerospace and national security technologies, and pointed to a track record of space-related investments that includes American Pacific Corporation, Calca Solutions, Firefly Aerospace, Redwire Space, and York Space Systems.
KEY QUOTES:
“Rocketdyne is more than just a company, it is the birthplace of U.S. rocket propulsion. 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. By taking the historic engine – the RL10 – and applying modern manufacturing discipline, we will honor its design while revolutionizing the production line.”
Kirk Konert, Managing Partner, AE Industrial Partners
“Our strategy is to identify critical technologies and build them into world-class companies. Rocketdyne’s unparalleled heritage offers the perfect foundation for this mission. 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.”
Jon Lusczakoski, Principal, AE Industrial Partners
“The acquisition of Rocketdyne demonstrates AE Industrial’s continued commitment to investing in the national security space and space exploration markets. Current and previous space investments of AE Industrial include American Pacific Corporation, Calca Solutions, Firefly Aerospace, Redwire Space and York Space Systems. All of these companies are critical market leaders, and the addition of Rocketdyne is a perfect fit to AE Industrial’s strategy and portfolio construction.”
David Rowe, Co-CEO and Managing Partner, AE Industrial Partners
