Rheinmetall AG announced Wednesday its agreement to acquire U.S. military vehicle parts manufacturer Loc Performance Products LLC for $950 million, marking a significant move by the German defense giant to broaden its product range and strengthen its presence in the U.S. market.
The Düsseldorf-based Rheinmetall emphasized that the acquisition aligns with its strategic goal of expanding its core business in military land vehicles on a global scale. The deal, which requires regulatory approval, is seen as a critical step in establishing a stronger foothold in the U.S., one of the largest defense markets in the world.
Rheinmetall Buys Loc Performance : Strategic Expansion into U.S. Defense Market
“We are making this investment because we have a clear strategy for growth and the U.S. will be an important core market for us in the coming years,” said Rheinmetall CEO Armin Papperger in a statement. He highlighted that the acquisition of Loc Performance would enhance Rheinmetall’s ability to pursue substantial defense contracts, potentially totaling more than $60 billion.
