L3Harris Technologies has completed the sale of a majority stake in its commercial space propulsion, power and electronics businesses, reviving the historic Rocketdyne name while retaining key defense programs and NASA’s RS-25 engine work that supports the Space Launch System.

The transaction, announced Tuesday, creates a new standalone company called Rocketdyne, with private equity firm AE Industrial Partners acquiring a 60% stake. L3Harris will retain a roughly 40% ownership interest in the new company while continuing as a strategic partner.

For Huntsville, the move has significant implications, but many of the area’s largest defense and NASA programs will remain under L3Harris.

The company said its RS-25 rocket engine operations were specifically excluded from the sale. The RS-25 engines power the core stage of NASA’s Space Launch System, which was developed at Marshall Space Flight Center and remains central to the Artemis program. Rocketdyne’s RL10 upper-stage engine, however, is included in the new company and continues to support United Launch Alliance’s Atlas V and Vulcan rockets, as well as upper stages used on Space Launch System missions.

The restructuring also leaves Huntsville’s growing missile production business with L3Harris.

Missile propulsion, solid rocket motors, hypersonic technologies and tactical missile manufacturing remain part of L3Harris’ defense portfolio, including work supporting systems such as Patriot Advanced Capability-3, Terminal High Altitude Area Defense and other missile defense programs.

Rocketdyne will focus on commercial space propulsion, power and electronics businesses, while L3Harris retains its defense missile portfolio and RS-25 engine operations.

L3Harris said proceeds from the $845 million transaction will be invested in facilities and advanced technologies to meet growing demand.

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