Rheinmetall AG has completed the acquisition of the U.S. company Loc Performance Products, LLC. The Düsseldorf-based technology group had announced the purchase of the renowned vehicle specialist based in Plymouth, Michigan, in August 2024.
Following approval by the relevant supervisory authorities, the transaction closed on November 29, 2024. In the future, the company will operate under the name American Rheinmetall VehiclesThe agreed purchase price is based on an enterprise value of $950 million.
With this strategic acquisition in the United States, Rheinmetall expands its position in the world's largest defense market and strengthens its core business in the land vehicle sector for military customers globally.
The investment is part of Rheinmetall's growth strategy in the United States, which is set to become an important home market for the group in the coming years. Rheinmetall expects the acquisition to bring significant benefits not only to its American operations, but also to its global operations. With this transaction, Rheinmetall expands its industrial base in the United States and creates additional access opportunities for its technologies in North America.
The acquisition specifically strengthens Rheinmetall's production capabilities in the United States, in view of large targeted orders for US Army vehicle programs with a total potential of over 60 billion dollars. Rheinmetall is one of the two remaining participants in the prototype phase of the XM30 program, which is intended to introduce a new generation of infantry fighting vehicles. The estimated volume is around 45 billion dollars for around 4.000 vehicles. At the same time, Rheinmetall participates in the program Common Tactical Truck (CTT), which expects a volume of approximately $16 billion for approximately 40.000 trucks.
Armin Papperger, Chairman of the Board of Management of Rheinmetall AG, said: “We are making this investment because we have a clear growth strategy and the USA will be an important key market for us in the years to come. I would like to warmly welcome the approximately one thousand employees of Loc Performance Products to the Rheinmetall Group. We greatly appreciate your expertise and look forward to joint successes.”
Papperger added: “The acquisition of Loc Performance Products shows that we are firmly targeting success in the USA and want to increase our share of the large market volume. We have a promising position in two large military projects, both in the XM30 program and in the CTT project. Everything speaks in favor of this acquisition: Loc Performance Products is already pursuing a sustainable business model with strong organic growth, has a highly qualified workforce and offers us large capacity reserves for targeted orders in the USA. This allows us to realize a completely local value chain in the USA.”
Thanks to the acquisition, American Rheinmetall Vehicles acquires a modern and efficient production area of 160.000 square meters with considerable capacity for future expansion. The company's diversified activities will contribute directly to the rapid growth of Rheinmetall's military vehicles business in the USA, managed by American Rheinmetall Vehicles, based in Sterling Heights, MI.
Loc Performance Products, LLC was founded in 1971 in Plymouth, MI and is a diversified, full-service provider for military and commercial customers. In addition to its headquarters in Plymouth, the company has additional locations in Lansing, MI; Lapeer, MI; and St. Marys, OH.
The vehicle specialist is a top-tier supplier of drivetrains, suspensions, track systems, rubber products, ballistic protection and fabricated structures for vehicle platforms. The company is a long-standing supplier to the US government and, in particular, OEM for most of the track systems of military ground vehicles in the US. Its products are also used by major vehicle manufacturers in the agriculture, construction, mining, rail, mass transit and oil and gas industries.
Loc Performance Products' manufacturing capabilities include modernized manufacturing, machining, and welding technologies that meet the critical requirements of the U.S. Army's XM30 and CTT programs.
With more than 1.000 highly qualified employees, Loc Performance Products has an experienced workforce with a high level of technical expertise – including maintenance, repair and combat enhancement of military vehicles – whose services will now be integrated into Rheinmetall’s internal supply chains.
American Rheinmetall Vehicles, LLC offers U.S. customers next-generation tracked and wheeled combat vehicles and tactical vehicle platforms. The company actively supports the U.S. Army in two high-priority modernization programs: the XM30 program, in which the Lynx XM30 has reached phases 3 and 4, and the program Common Tactical Truck (CTT), where the HX3 CTT recently completed evaluation by the U.S. Army.
The family American Rhine Metal 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 Rhinemetal Defense in Reston, VA.
