Pentagon to invest $1 billion in L3Harris rocket motor business
CNBC • • general
Key Points:
- The U.S. government will invest $1 billion in L3Harris Technologies' rocket motor business to ensure a steady supply of motors used in missiles like Tomahawks and Patriot interceptors, with the investment structured as a convertible security converting to equity upon the business's planned IPO in 2026.
- This investment is part of the Pentagon's new Acquisition Transformation Strategy, aiming to build a resilient industrial base by investing directly in critical suppliers and negotiating multi-year procurement agreements to save costs.
- L3Harris will carve out its Missile Solutions unit into a new publicly traded company, retaining majority ownership, which will secure consistent business and support the production of missile propulsion systems for key defense programs.
- The move follows recent government efforts
