L3Harris Technologies, a Florida-based defense technology company, recently closed on a $1 billion Department of Defense investment in the company’s Missile Solutions (MSL) business.
The company is in the process of transforming and growing its MSL production operations and will use funding to accelerate research and development, expand and modernize facilities, and increase production capacity for critical national security technologies. Pending market conditions, L3Harris intends to pursue an initial public offering (IPO) of MSL during the second half of the year.
“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,” Christopher Kubasik, L3Harris chairman and CEO, said.
The investment comes in the form of a convertible preferred security that will convert into common equity upon an IPO. The department will receive certain warrants to purchase common stock while L3Harris will retain at least 80 percent of share in the new MSL business. The company also will consolidate the financial results.
L3Harris is using the investment, along with future IPO proceeds and other sources of capital, to expand and modernize its solid rocket motor production facilities in Camden, Ark., Huntsville, Ala. and Orange, Va.
MSL was created in 2026 to bring together L3Harris’ missile capabilities.