Rheinmetall has bared plans to acquire Loc Performance, a Plymouth, Michigan-based manufacturer of components for military and civilian vehicles, to strengthen the German arms producer’s U.S. market presence.
The company said the acquisition price will be based on Loc Performance’s enterprise value of $950 million. According to Rheinmetall CEO Armin Papperger, the move, subject to regulatory approval, aligns with the company’s growth strategy and focus on the U.S. as one of its key markets.
“Everything speaks in favor of this acquisition,” he said, noting Loc Performance’s sustainable business model, capabilities and quality workforce.
Rheinmetall’s order prospects include U.S. Army vehicle procurement with a potential value of up to $60 billion.
The company, through Sterling Heights, Michigan-based American Rheinmetall Vehicles, is one of two manufacturers left to prototype the Army’s XM30 mechanized infantry combat vehicle, with a potential $45 billion contract for about 4,000 IFVs.
Rheinmetall is also a prototyping participant in the Army’s Common Tactical Truck program, which is geared for a potential production volume of 40,000 vehicles valued at around $16 billion.