Strategy for growth in US (Il Sole 24 Ore Radiocor) - Berlin , 14 Aug - The German defence company Rheinmetall said it has signed an agreement to acquire all equity interests in Loc Performance Products, a US specialist in vehicles for military customers.

The purchase price for the deal, which is subject to regulatory approvals, is based on an enterprise value of 950 million dollars.

According to Rheinmetall, the acquisition provides it with key capabilities in the US and enables American Rheinmetall Vehicles to more effectively and comprehensively supply the US Department of Defense by expanding the company's product portfolio and domestic manufacturing capabilities.

"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," commented Rheinmetall CEO Armin Papperger. "The acquisition of Loc Performance proves that we are consistently focussing on success in the USA and want to expand our share of the large market volume. Everything speaks in favour of this acquisition: Loc Performance is already pursuing a sustainable business model there with robust organic growth, has a highly qualified workforce and offers us significant capacity reserves for the orders we are targeting in the USA.".

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(RADIOCOR) 14-08-24 10:41:35 (0233) 5 NNNN