Defense Supplier Rheinmetall To Acquire Loc Performance In 950m Deal

Rheinmetall Acquires Loc Performance

Overview

Rheinmetall, a German defense group, has announced plans to acquire Loc Performance, a Michigan-based military vehicle supplier, in a deal valued at approximately $950 million.

Key Facts

• The acquisition is expected to close in 2026.
• Loc Performance's annual sales are projected to reach between $650 million and $820 million by 2026.
• Rheinmetall's headquarters are in Duesseldorf, Germany.

Strategic Benefits

The acquisition will allow Rheinmetall to expand its presence in the US military vehicle market and strengthen its position as a leading global defense contractor.

Rheinmetall expects the deal to generate significant cost synergies, improve its operating efficiency, and enhance its product portfolio.

Loc Performance

Loc Performance is a leading supplier of military vehicles and components to the US Department of Defense.

The company has a strong track record of innovation and product development, and it is known for its high-quality products and services.

Rheinmetall

Rheinmetall is a global defense technology company with a wide range of products and services, including military vehicles, weapons, ammunition, and electronics.

The company has a significant presence in the US market, and it has been supplying the US military for decades.

Financial Impact

The acquisition is expected to have a positive impact on Rheinmetall's financial performance.

The company expects the deal to generate annual cost savings of approximately $100 million by 2026.

Conclusion

The acquisition of Loc Performance is a strategic move by Rheinmetall that will strengthen its position in the US military vehicle market, generate significant cost synergies, and enhance its product portfolio.

The deal is expected to close in 2026.

Sources

• [Rheinmetall website](https://www.rheinmetall.com)
• [Loc Performance website](https://www.locperformance.com)
• [Defense News article](https://www.defensenews.com/land/2023/08/14/rheinmetall-to-acquire-us-military-vehicle-supplier-loc-performance-in-950-million-deal/)