Holland & Knight Advises RAFAEL Advanced Defense Systems in Joint Venture with Kratos Defense & Security Solutions
WASHINGTON (March 26, 2025) – Holland & Knight represented RAFAEL Advanced Defense Systems Ltd. and its U.S. subsidiary, RAFAEL USA, in a $175 million joint venture with Kratos Defense & Security Solutions Inc. (Nasdaq: KTOS). The new joint venture, named Prometheus Energetics, was announced on February 26.
Prometheus aims to establish a U.S.-based supplier of solid rocket motors (SRMs) and other energetics. The new state-of-the-art energetics manufacturing facility will be headquartered on an approximate 500-acre site near the U.S. Navy and Army facility in Crane, Indiana, and is expected to begin production in 2027. Prometheus will leverage RAFAEL's advanced technologies and Kratos' expertise in hypersonic and advanced systems to strengthen the U.S. defense industrial base and support national security needs.
RAFAEL, one of Israel's largest defense contractors, is the developer and manufacturer of the Iron Dome and the TROPHY APS, which are in service in the Israeli Defense Forces, as well as the David's Sling, which provides the middle layer of air defense for the state of Israel.
Headquartered in San Diego, California, Kratos is a leader in advanced systems, strategic systems, ballistic missile targets, sub-orbital research vehicles, sounding rockets and solid rocket motors. Kratos has served the U.S. advanced systems and missile defense communities for decades.
Holland & Knight's representation of RAFAEL was led by Partners Meital Stavinsky (Technology Regulation/Israel Practice), Olesya Bakar (Corporate/M&A), Antonia Tzinova (International Trade/CFIUS) and Robert Hill and Senior Counsel Albert Sueiras (Intellectual Property). They were assisted by Partner Mark Melton (Tax) and Associate Marina Veljanovska O'Brien (International Trade/CFIUS).
More information on the transaction can be found here.
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