With a strategic acquisition in the USA, the Düsseldorf-based Rheinmetall Group 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.
As Rheinmetall announced in a recent press release, the company signed an agreement on August 13 to acquire all shares in Loc Performance Products, LLC, a renowned vehicle specialist based in Plymouth, Michigan.
By acquiring Loc Performance, the Group is expanding its business with the US military, enlarging its industrial base in the USA and creating further access for its technologies in North America. Rheinmetall is also strengthening its position with a view to targeted high-volume major orders for US Army vehicle programs (-> current news about the US armed forces) with a total potential of more than 60 billion US dollars (just under 55 billion euros), Rheinmetall is strengthening its manufacturing capacities in the USA. 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 40 billion euros for around 4,000 infantry fighting vehicles. Furthermore Rheinmetall is also applying for the Common Tactical Truck (CTT) programprogram, which has a volume of around 14.5 billion euros for around 40,000 trucks. Furthermore, Rheinmetall expects the acquisition of Loc Performance to bring significant benefits for both its American and global business. For example, an experienced workforce with a high level of technical expertise – including in the maintenance, repair and combat enhancement of military combat vehicles – will be integrated into Rheinmetall’s internal supply chains. https://militaeraktuell.at/bundesheer-in-tirol-hubschrauber-stationierung-ab-2028/ The agreed purchase price for Loc Performance, which is due upon completion of the transaction, is based on an enterprise value of €863 million. The closing of the acquisition is subject to regulatory approvals. With its broad-based activities, the company will make a direct contribution to the Rheinmetall Group’s fast-growing US military vehicle business, which is managed by American Rheinmetall Vehicles based in Sterling Heights, Michigan. Founded in 1971, the company also has other locations in Lansing and Lapeer, Michigan, as well as in St. Marys, Ohio. The vehicle specialist is a powerful full-line supplier of drivetrains, suspensions, track systems, rubber products, armor products and fabricated structures for vehicle platforms and is an established supplier to the US government and, in particular, OEM for most military ground vehicle track systems in the USA. In addition, the company’s products are used by major vehicle manufacturers in the agricultural, construction, mining, locomotive, transportation and oil and gas industries. Loc Performance’s current manufacturing capabilities include modernized fabrication, machining and welding technologies that can meet the critical manufacturing requirements of the U.S. Army’s XM30 and CTT programs. An available manufacturing footprint of 1.7 million square feet provides significant capacity for future expansion.
“Everything speaks in favor of this acquisition: Loc Performance is already pursuing a sustainable business model there with robust organic growth, has a highly qualified workforce and offers us ample capacity reserves for the targeted orders in the USA.
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Rheinmetall-Chef Armin Papperger
Armin Papperger, CEO of Rheinmetall AG: “We are making this investment because we have a clear strategy for growth and the United States will be an important core market for us in the coming years. The acquisition of Loc Performance proves that we are consistently focusing on success in the USA and want to expand our share of the large market volume.” Matthew Warnick, Managing Director of American Rheinmetall Vehicles, adds: “In the USA, we are promisingly positioned in two major military projects, both the XM30 infantry fighting vehicle program and the CTT project. The acquisition of Loc Performance gives us the manufacturing readiness that will enable us to realize the major orders we are aiming for. This puts us in a position to realize 100 percent local value creation in the USA.” https://militaeraktuell.at/militaer-aktuell-luminox-back-to-the-blue/ Jason Atkinson, CEO of Loc Performance: “American Rheinmetall Vehicles’ significant engineering capabilities and next-generation technologies, which are part of the exceptional global Rheinmetall Group, are a great fit with Loc Performance’s 53 years of manufacturing experience in the United States. I am excited about this combination, which represents a powerful end-to-end solution that will bring even better products to our customers and even more growth to our combined company.” The American Rheinmetall family includes American Rheinmetall Vehicles in Sterling Heights and Troy (both Michigan), American Rheinmetall Munitions in Stafford (Virginia), Windham (Maine) and Camden (Arkansas), American Rheinmetall Systems in Biddeford (Maine) and the parent company American Rheinmetall Defense in Reston (Virginia).
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