The Rheinmetall AG officially completed the takeover of the US company Loc Performance Products, LLC a few days ago. The Düsseldorf-based company had announced the the acquisition of the renowned vehicle specialist based in the US state of Michigan in August. The acquisition was completed following approval by the relevant regulatory authorities.
Loc Performance will in future operate under the name American Rheinmetall Vehicles; the agreed purchase price is based on an enterprise value of just over 900 million euros. 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. Rheinmetall expects the acquisition to benefit not only its American business, but also its global activities. This was confirmed by 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.” https://militaeraktuell.at/niederlaendische-armee-kauft-neue-waggons/ The takeover will strengthen Rheinmetall’s manufacturing capacities in the USA in particular. This is important in view of the high-volume major orders for vehicle programs of the US Army (-> current news about the US armed forces) with a total potential of over 57 billion euros. For example, Rheinmetall is one of two remaining participants in the current prototype phase of the prototype phase of the XM30 program. This serves to introduce a new generation of infantry fighting vehicles; the volume is estimated at around 43 billion euros for around 4,000 units. At the same time, Rheinmetall is applying for the Common Tactical Truck (CTT) program (-> HX3-CCT prototype for the US Army), which has a volume of around 14 billion euros for around 40,000 trucks. Papperger also referred to these projects in his statement: “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. We have a promising position in two major military projects there, both in the XM30 infantry fighting vehicle program and in the CTT project. Everything therefore speaks in favor of this acquisition: Loc Performance Products is already pursuing a sustainable business model with robust organic growth, has a highly qualified workforce and offers us ample capacity reserves for the targeted orders in the USA.”
In addition to American Rheinmetall Vehicles in Sterling Heights and Troy (both Michigan), the American Rheinmetall family also includes 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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