The German concern Rheinmetall has completed the purchase of the American vehicle manufacturer Loc Performance Products.

This is stated in a Rheinmetall press release.

Following approval by competent supervisory authorities, the transaction was closed on November 29, 2024. In future, the company will operate under the name American Rheinmetall Vehicles.

The agreed purchase price is based on an enterprise value of $950 million.

According to the company, “with this strategic acquisition in the USA, Rheinmetall is expanding its position in the world’s largest defense market and strengthening its core business in the field of land vehicles for military customers worldwide.”

The investment follows Rheinmetall’s drive for growth in the United States, which will be an important domestic market for the Group in the future.

Rheinmetall expects the acquisition to bring considerable benefits not only for its American business, but also for its global activities.

With this acquisition, Rheinmetall is expanding its industrial base in the USA and creating further access for its technologies in North America.

The acquisition strengthens Rheinmetall’s production capacities in the USA in particular, with a view to targeted high-volume major orders for U.S. Army vehicle programs with a total potential of over $60 billion.

Rheinmetall is one of two remaining participants in the current prototype phase of the XM30 program.

This serves to introduce a new generation of infantry fighting vehicles. The volume is estimated at around $45 billion for around 4,000 infantry fighting vehicles.

At the same time, Rheinmetall is applying for the Common Tactical Truck (CTT) program, which has a volume of around $16 billion for around 40,000 trucks.

“We are making this investment because we have a clear strategy for growth and the United States will be an important core market for us in the coming years. I would like to extend a warm welcome to the approximately one thousand employees at Loc Performance Products to the Rheinmetall Group. We greatly appreciate your expertise and look forward to our joint successes,” stated Armin Papperger, Chairman of the Executive Board of Rheinmetall AG.

On November 28, it was reported that a plant for the production of 155-mm artillery ammunition by the German defense giant Rheinmetall in Lithuania would be launched by mid-2026.