The Düsseldorf-based technology group Rheinmetall announced the purchase of the renowned vehicle specialist Loc Performance Products, LLC 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.
It is stated in the press release that 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.
Armin Papperger, Chairman of the Executive Board 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. I would like to extend a warm welcome to the approximately one thousand employees at Loc Performance Products to the Rheinmetall Group. We greatly appreciate your expertise and look forward to our joint successes.”
Armin Papperger continues: “The acquisition of Loc Performance Products 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, 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. We can thus realize 100% local value creation in the USA.”