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Pentagon closes $1 billion investment in L3Harris missile unit
- The Pentagon completed a $1 billion investment in L3Harris Technologies’ missile business, formalizing the deal.
- The investment is structured as a convertible security that could convert into equity if Missile Solutions pursues an IPO in late 2026.
- The government will also receive warrants to purchase additional shares as part of the deal.
- L3Harris will retain about 80% ownership of Missile Solutions after the transaction.
- Missile Solutions unites propulsion, guidance components, and related subsystems under one unit.
- Solid rocket motors remain a bottleneck, driving demand for expanded production capacity.
- The investment supports modernization of facilities in Camden, Arkansas; Huntsville, Alabama; and Orange, Virginia.
- The move reflects a broader Pentagon trend toward direct intervention in the defense industrial base.
- Some analysts worry about potential procurement bias if the government is also a shareholder.
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