MUSKEGON TWP. — Defense contractor L3Harris Technologies Inc. has completed the sale of its Muskegon Township-based Combat Propulsion Systems operation.
The Melbourne, Fla.-based L3Harris (NYSE: LHX) closed the $400 million cash deal after signing a definitive agreement with German manufacturer RENK Group in March. The new entity, known as RENK America, will now be headquartered at L3Harris’ existing 1.2 million-square-foot facility, located at 76 S. Getty St. in Muskegon Township.
In addition to converting the facility into its company headquarters, RENK America announced today that it plans to keep the 400-employee workforce intact.
“Becoming part of the RENK Group enables us to reinforce our mission of supporting the U.S. Army and our allies,” RENK America CEO Ted Trzesniowski said in a statement. “The new organization — strengthened by RENK Group’s advanced technology and resources — will further enhance our combat mobility systems to offer the best value to customers and ideally position us for future platforms.”
Based in Augsburg, Germany, RENK is a manufacturer of automatic transmissions and gearing for the armored vehicle, defense and civil marine, energy production, plastics, and oil and gas sectors. RENK employs 2,600 people globally and generated 550 million euros in revenue last year, which equates to approximately $650.5 million, according to a statement.
Combat Propulsion Systems also generated $230 million in annual revenues for the $18 billion L3Harris, which was formed when defense and aerospace manufacturers L3 Technologies and Harris Corp. merged in 2019.
“We intend to lead the modernization of American armored vehicle mobility systems with the efficiencies and opportunities created by this merger of industry leaders,” RENK Group CEO Susanne Wiegand said in a statement. “RENK America will advance our ability to empower our forces by offering reliable and safe combat mobility innovations.”
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