Rheinmetall Expands U.S. Defense Operations with Strategic Acquisition of Loc Performance for $950 Million

Rheinmetall Expands U.S. Defense Operations with Strategic Acquisition of Loc Performance for $950 Million

(IN BRIEF) Rheinmetall has announced plans to acquire Loc Performance Products, LLC, a U.S.-based vehicle specialist, for $950 million. This strategic acquisition aims to strengthen Rheinmetall’s position in the U.S. defense market and expand its production capabilities for military vehicles, particularly in support of the XM30 infantry fighting vehicle and CTT tactical truck programs. The acquisition will enhance Rheinmetall’s ability to deliver on major U.S. defense contracts and expand its presence in North America.

(PRESS RELEASE) DÜSSELDORF, 14-Aug-2024 — /EuropaWire/ — Rheinmetall, a global leader in defense technology, has announced plans to acquire Loc Performance Products, LLC, a U.S.-based vehicle specialist, in a strategic move to strengthen its position in the American defense market. The acquisition, valued at $950 million, will enhance Rheinmetall’s capabilities in military vehicle production and expand its industrial base in the United States.

Loc Performance, headquartered in Plymouth, Michigan, has a skilled workforce of around 1,000 employees and operates multiple facilities across Michigan and Ohio. The company is renowned for its expertise in drivetrains, suspensions, track systems, and armor products, serving both military and civilian sectors. With this acquisition, Rheinmetall aims to increase its participation in high-volume U.S. military contracts, particularly the XM30 infantry fighting vehicle and CTT tactical truck programs, which have a combined potential of over $60 billion.

Armin Papperger, CEO of Rheinmetall AG, emphasized the importance of this acquisition as part of Rheinmetall’s growth strategy in the U.S., stating, “The United States will be a key market for us in the coming years. Acquiring Loc Performance allows us to expand our market share and enhance our local manufacturing capabilities, positioning us for success in major U.S. defense programs.”

The acquisition will also provide American Rheinmetall Vehicles, a subsidiary of Rheinmetall, with increased manufacturing capacity, enabling 100% local production for U.S. defense contracts. Matthew Warnick, CEO of American Rheinmetall Vehicles, highlighted the strategic benefits, saying, “This acquisition strengthens our ability to deliver on major U.S. military projects and supports our commitment to providing next-generation combat vehicles to the U.S. Army.”

Loc Performance CEO, Jason Atkinson, expressed optimism about the partnership, noting that the combination of Rheinmetall’s advanced technologies with Loc’s manufacturing expertise will lead to even better products for customers and drive growth for the combined company.

The transaction is subject to regulatory approvals and is expected to close upon meeting all necessary conditions. This acquisition marks a significant step in Rheinmetall’s expansion in the U.S. defense sector, aligning with its long-term strategic goals.

American Rheinmetall Vehicles provides US customers with next-generation tracked and wheeled combat vehicles and tactical wheeled vehicle platforms. American Rheinmetall Vehicles supports the U.S. Army in two major modernisation programs, the XM30 Combat Vehicle program, and the CTT program.

The acquisition of Loc Performance will be of great benefit to American Rheinmetall Vehicles as the company further expands and strengthens its presence in the United States. With the purchase, American Rheinmetall Vehicles acquires 1.7 million square feet of modern, efficient manufacturing space with significant capacity for future expansion.

American Rheinmetall is supporting the Department of Defense in key modernisation programs of national significance that directly improve the effectiveness, mobility and situational awareness of soldiers on the battlefield. This includes developing and delivering next-generation products and capabilities, including advanced direct and long-range precision fire weapons, innovative tracked and wheeled combat vehicle platforms, and intelligent mission systems.

The American Rheinmetall family includes American Rheinmetall Vehicles in Sterling Heights (MI) and Troy (MI), American Rheinmetall Munitions in Stafford (VA), Windham (ME) and Camden (AR), American Rheinmetall Systems in Biddeford (ME) and the parent company American Rheinmetall Defense in Reston (VA).

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SOURCE: RHEINMETALL AG