Rheinmetall Expands Global Reach with Acquisition of Majority Stake in South African Plant Engineering Firm

Rheinmetall Expands Global Reach with Acquisition of Majority Stake in South African Plant Engineering Firm

(IN BRIEF) Rheinmetall is acquiring a majority stake in Resonant Holdings (Pty) Ltd, a South African specialist in plant engineering for chemical applications, by securing 51% ownership in a new joint venture, Rheinmetall Resonant South Africa. This move aims to address the growing global demand for ammunition production facilities and is expected to generate over EUR 100 million in annual sales. The acquisition will enhance Rheinmetall’s capabilities in planning, constructing, and operating production facilities for chemical products such as propellant powder and explosives. The transaction is pending regulatory approvals, and the partnership will expand Rheinmetall’s technological capabilities and market reach.

(PRESS RELEASE) DÜSSELDORF, 3-Aug-2024 — /EuropaWire/ — Rheinmetall is set to expand its plant engineering capabilities by acquiring a majority stake in Resonant Holdings (Pty) Ltd, a South African specialist in plant engineering for chemical applications. The acquisition agreement has been signed, with Rheinmetall Waffe Munition GmbH taking 51% ownership in the new joint venture, Rheinmetall Resonant South Africa, while current Resonant Holdings shareholders will retain 49%. The newly formed company expects to generate annual sales exceeding EUR 100 million.

Details regarding the purchase price remain confidential, and the transaction is pending customary regulatory approvals. This acquisition aligns with Rheinmetall’s strategic response to the increasing global demand for ammunition and the construction of related production facilities. By integrating Resonant Holdings’ expertise, Rheinmetall aims to enhance its ammunition production capabilities, enabling more robust independent planning, construction, and operation of facilities for manufacturing chemical products like propellant powder and explosives.

Resonant Holdings, employing around 150 people, is renowned for its proficiency in designing and constructing specialized plants, including those for chemical and explosive products. This expertise complements Rheinmetall’s existing capabilities in plant engineering, particularly in chemical, energetic, and explosives technology. The partnership allows Rheinmetall to offer a comprehensive range of services, from designing and constructing state-of-the-art plants to commissioning them to meet the specific needs of global partners.

For Resonant, this partnership means expanded global reach, industry growth, and access to new markets. The combined strengths of both companies will drive innovation and efficiency, offering exceptional value to customers. Rheinmetall is committed to preserving Resonant’s technology and workforce, ensuring continued excellence and expertise.

The acquisition highlights Rheinmetall’s dedication to enhancing its technological capabilities and providing cutting-edge solutions to its partners. By securing a controlling stake in Resonant Holdings, Rheinmetall positions itself at the forefront of innovation in the engineering and defense industries, delivering unmatched expertise and comprehensive solutions.

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SOURCE: RHEINMETALL AG