RHEINMETALL acquires US vehicle specialist

With a strategic acquisition in the USA, the Rheinmetall Group based in Düsseldorf is expanding its position in the world's largest defense market and strengthening its core business in the area of land vehicles for military customers worldwide. Rheinmetall signed an agreement on August 13, 2024 to acquire all shares of Loc Performance Products, LLC, a renowned vehicle specialist based in Plymouth, Michigan.

By acquiring Loc Performance, the Group is expanding its business with the US military, enlarging its industrial base in the USA, and creating further access points for its technologies in North America. Furthermore, Rheinmetall is strengthening its manufacturing capacities in the USA with a view to high-volume large contracts for U.S. Army vehicle programs with a total potential value of over 60 billion USD. Rheinmetall is one of two remaining participants in the ongoing prototype phase of the XM30 program, which is aimed at introducing a new generation of infantry fighting vehicles. The volume is estimated at around 45 billion USD for approximately 4,000 infantry fighting vehicles. Additionally, Rheinmetall is bidding for the Common Tactical Truck (CTT) program, which has a volume of around 16 billion USD for approximately 40,000 trucks.

Rheinmetall anticipates significant benefits from the acquisition of Loc Performance for both its American and global business. An experienced workforce with high professional expertise – including in maintenance, repair, and combat value enhancement of military combat vehicles – will be integrated into Rheinmetall's internal supply chains.
The agreed purchase price for Loc Performance, payable upon completion of the transaction, is based on an enterprise value of 950 million USD. The conclusion of the acquisition is subject to regulatory approvals.

With its approximately 1,000 skilled employees, Loc Performance generated significant and growing revenues. With its broad activities, the company will make a direct contribution to Rheinmetall Group's rapidly growing U.S. military vehicle business, led by American Rheinmetall Vehicles based in Sterling Heights, MI.

The acquisition gives Rheinmetall Group important capabilities in the USA, enabling American Rheinmetall Vehicles to more effectively and comprehensively supply the U.S. Department of Defense by expanding the company's product portfolio and domestic manufacturing capacities.

The investment follows Rheinmetall's clear growth strategy in the United States, which will become a significant core business for the Group in the future. Loc Performance already operates a sustainable business model with robust organic growth, has highly qualified workforce, and offers ample capacity reserves to Rheinmetall Group for the desired contracts in the USA.

Loc Performance Product, LLC was founded in 1971 in Plymouth, MI and is a diversified full-service provider for military customers as well as the civilian sector. In addition to its headquarters in Plymouth, MI, the company has additional locations in Lansing, MI and Lapeer, MI as well as in St. Marys, OH.

The vehicle specialist is a powerful provider of drivetrains, suspensions, track systems, rubber products, armor products, and fabricated structures for vehicle platforms. The company is an established supplier to the U.S. government and is the OEM for most military ground vehicle track systems in the USA. Furthermore, the company's products are used by reputable vehicle manufacturers in the fields of agriculture, construction, mining, locomotives, transport, and oil and gas. Current manufacturing capabilities of Loc Performance include modernized production, machining, and welding techniques that can meet the critical manufacturing requirements of the XM30 and CTT programs of the U.S. Army. An available production area of 1.7 million square meters provides significant capacity for future expansions.

American Rheinmetall Vehicles offers U.S. customers next-generation tracked and wheeled combat vehicles as well as tactical wheeled vehicle platforms. American Rheinmetall Vehicles supports the U.S. Army in two significant modernization programs, the XM30 Combat Vehicle Program, and the Common Tactical Truck (CTT) Program.

The acquisition of Loc Performance Products, LLC will be highly beneficial for American Rheinmetall Vehicles as it expands and strengthens the company's presence in the USA. With the acquisition, American Rheinmetall Vehicles acquires a modern, efficient production space of 160,000 square meters with significant capacities for future expansions.

American Rheinmetall supports the Department of Defense in important national modernization programs that directly improve the effectiveness, mobility, and situational awareness of soldiers on the battlefield. This involves developing and delivering next-generation products and capabilities, including advanced precision firearms with direct and long-range capabilities, 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 American parent company American Rheinmetall Defense in Reston (VA).

American Rheinmetall Vehicles Online