Rheinmetall Expands In US With Acquisition Of Loc Performance Products
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Rheinmetall AG has now completed the takeover of the U.S. company Loc Performance Products, LLC. The Düsseldorf-based technology group announced the purchase of the renowned vehicle specialist based in Plymouth, Michigan, in August 2024. Following approval by competent supervisory authorities, the transaction was closed on November 29, 2024. In future, the company will operate under the name American Rheinmetall Vehicles. The agreed purchase price is based on an enterprise value of USD 950 million.
With this strategic acquisition in the USA, Rheinmetall is expanding its position in the world’s largest defense market and strengthening its core business in the field of land vehicles for military customers worldwide.
The investment follows Rheinmetall’s drive for growth in the United States, which will be an important domestic market for the Group in the future. Rheinmetall expects the acquisition to bring considerable benefits not only for its American business, but also for its global activities. With this acquisition, Rheinmetall is expanding its industrial base in the USA and creating further access for its technologies in North America.
The acquisition strengthens Rheinmetall’s production capacities in the USA in particular, with a view to targeted high-volume major orders for U.S. Army vehicle programs with a total potential of over USD 60 billion. Rheinmetall is one of two remaining participants in the current prototype phase of the XM30 program. This serves to introduce a new generation of infantry fighting vehicles. The volume is estimated at around USD 45 billion for around 4,000 infantry fighting vehicles. At the same time, Rheinmetall is applying for the Common Tactical Truck (CTT) program, which has a volume of around USD 16 billion for around 40,000 trucks.
To read more, please visit the Rheinmetall website.