Rheinmetall AG Acquires U.S. Vehicle Specialist Loc Performance

Rheinmetall AG has signed an agreement to acquire Loc Performance Products, LLC, a vehicle specialist based in Plymouth, Michigan. This strategic move aims to expand Rheinmetall's position in the North American defense market and strengthen its land vehicle business for military customers worldwide.

The acquisition increases Rheinmetall's industrial base in the USA and enhances access to high-volume contracts for U.S. Army vehicle programs totaling over USD 60 billion. Additionally, it integrates a skilled workforce with expertise in military vehicle maintenance, repair, and combat enhancement into Rheinmetall's internal supply chains.

The agreed purchase price, based on an enterprise value of USD 950 million, will be due upon closing, subject to regulatory approvals. Loc Performance operates multiple facilities and supplies drivetrain, suspension, track, armor, and fabricated structures for military vehicles. The acquisition underscores Rheinmetall's strategy for growth in the U.S., aiming for significant contributions to its American military vehicle business.