Mentioned:
One of the biggest defense contractors in the United States is preparing to launch a new company on Wall Street. But, why?
What’s happening:
- L3Harris Technologies (NYSE: LHX) has officially filed a Form S-1 with the United States Securities and Exchange Commission to spin out Missile Solutions as its own publicly traded company through an IPO
Why it matters:
- Missile Solutions develops solid rocket motors and propulsion systems for American military missile programs including Tomahawk cruise missiles
Going deeper:
- Missile Solutions was initially formed from L3Harris Technologies’ acquisition of Aerojet Rocketdyne which they purchased for $4.7B USD in an all cash deal
- The Pentagon previously invested $1B USD into Missile Solutions through a convertible preferred security that will automatically convert into common shares in the company upon them going public
