L3Harris Technologies has finalised a $1bn investment from the Department of War (DoW) aimed at boosting its Missile Solutions (MSL) operations.
The funding will be used to expand and update manufacturing sites, advance research and development, and raise output of defence technologies regarded as key to national security.
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L3Harris and DoW initially signed letter of intent for the investment in January this year.
The arrangement involves the DoW acquiring a convertible preferred security in the MSL business, which is set to convert into common equity once an initial public offering (IPO) takes place.
L3Harris plans to pursue the IPO of the business in the second half of 2026, subject to market conditions.
Additionally, the deal grants the DoW certain warrants to purchase MSL common stock.
The company intends to direct the new capital, together with future IPO proceeds and other financing, into improving and enlarging solid rocket motor production sites located at Camden in Arkansas, Huntsville in Alabama, Orange in Virginia and additional facilities.
These efforts support the Department of War’s missile priorities, including programmes such as PAC-3, THAAD, Tomahawk, and Standard Missile.
Christopher Kubasik, Chairman and CEO of L3Harris, commented: “The investment will allow us to accelerate innovation and enhance our ability to deliver the advanced capabilities our warfighters need to deter and defeat emerging threats.”
L3Harris created MSL earlier this year, consolidating missile operations previously spread across its business including capabilities gained through the acquisition of Aerojet Rocketdyne.
The company will retain more than 80% ownership in MSL and absorb its financial results.
