The Rheinmetall-Lockheed Martin GMARS mobile rocket system on display at Eurosatory 2024 in Paris. (Christina Mackenzie / Breaking Defense)
WASHINGTON — Rheinmetall announced plans today to acquire Michigan-based Loc Performance for just under $1 billion.
“Loc brings with it tremendous manufacturing capabilities for producing vehicle designs and related activities,” Matthew Warnick, American Rheinmetall Vehicles managing director, told Breaking Defense during a phone call. “That, coupled with our international presence, creates significant synergies, both for their defense and commercial business.”
If all goes as planned and regulators approve the acquisition, Warnick said the deal should be completed by the end of December.
In recent years, the German-based Rheinmetall has sought to carve out a larger share of the US market and is currently one of two companies left competing for the US Army’s Bradley replacement, on a team vying to win the Common Tactical Truck program and eyeing new opportunities inside the artillery space. The purchase of Loc, for $950 million, brings with it a new US manufacturing facility and expertise for vehicle drivelines, suspensions, track systems, rubber products, armor products and fabricated structures.
“Rheinmetall expects the acquisition of Loc Performance to bring considerable benefits for both its American and for its global business,” the company said in a press release. “For example, an experienced workforce with a high level of technical expertise — including in the maintenance, repair and combat enhancement of military combat vehicles — will be integrated into Rheinmetall’s internal supply chains.”
