AE Industrial Partners has agreed to acquire a controlling interest in L3Harris’ Space Propulsion and Power Systems business for $845 million, retaining L3Harris as a minority stakeholder in the venture.

Information on the Target

L3Harris Technologies (NYSE: LHX) has announced an agreement for AE Industrial Partners to acquire a controlling interest in its Space Propulsion and Power Systems business. The transaction is structured at a total enterprise value of $845 million, with an expected closing in the second half of 2026, pending regulatory approvals and customary closing conditions. Notably, the sale does not include L3Harris’ RS-25 rocket engine business, and the company will retain approximately a 40% ownership stake in the new entity focused on space technology.

Industry Overview in the Target’s Specific Country

The aerospace and defense industry is experiencing significant growth in the United States, driven by increasing government spending on national security and advancements in space technology. A renewed emphasis on innovation within the defense sector is fostering partnerships between private companies and governmental agencies, facilitating rapid development of next-generation capabilities.

As commercial space exploration gains momentum, private investments in space-related technologies have surged. Companies, including AE Industrial, are keen on capit