L3Harris Technologies revealed plans for a proposed partnership with the Department of Defense (DoD) to expand production capacity for solid rocket motors (SRM) used in US and allied missile systems.
The agreement outlines a $1bn investment by the DoD in L3Harris’ Missile Solutions business through a convertible preferred security, which will automatically convert into common equity if the business completes an initial public offering (IPO).
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L3Harris intends to pursue the IPO in the latter half of 2026, establishing a publicly traded company dedicated to propulsion systems.
The deal is part of the DoW’s new acquisition strategy and is structured to enable Missile Solutions to increase manufacturing output for several missile programmes, including PAC-3, THAAD, Tomahawk, and Standard Missile.
L3Harris formed Missile Solutions after its acquisition of Aerojet Rocketdyne, consolidating its missile system capabilities into one business unit to support both offensive and defensive requirements.
L3Harris chairman and CEO Christopher Kubasik said: “We’re taking action to build today’s ‘Arsenal of Freedom’ by launching a pure-play missile solutions provider.
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By GlobalData“Recent Trump Administration actions have placed renewed emphasis on strengthening the defence industrial base and reinvigorating competition following a 30-year wave of consolidation. Building on several years of sustained investment and operational improvements by L3Harris, this new company will serve as a key partner to the DoW in supporting efforts to deter and defeat America’s adversaries.”
After completion of these transactions, L3Harris will keep majority control over Missile Solutions.
The company expects that forming an independent business focused on missile solutions will bring additional value for its shareholders and help refine its strategic direction.
JP Morgan Securities is advising L3Harris on financial matters for the proposed transaction, while Vinson & Elkins is providing legal counsel.
Recently, L3Harris Technologies agreed to divest controlling interest in its Space Propulsion and Power Systems business to AE Industrial.
