Rheinmetall is set to acquire for $950 million Loc Performance, a vehicle specialist headquartered in Plymouth, Michigan, with a workforce of around 1,000 employees and customers in the civilian as well as defense sectors.
Loc Performance’s offerings include drivetrains, suspensions and track systems, many of which are used by U.S. military ground vehicles, Rheinmetall said Tuesday.
The acquisition is expected to bolster the manufacturing capability and expand the product portfolio of American Rheinmetall Vehicles, enabling the U.S. subsidiary to better support the Department of Defense.
Rheinmetall’s work with the DOD include the XM30 program, which seeks to develop a new generation of infantry fighting vehicles, and the Common Tactical Truck. Loc Performance’s manufacturing capabilities are expected to benefit these efforts.
American Rheinmetall Vehicles Managing Director Matthew Warnick told Breaking Defense that the acquisition is expected to be completed by the end of December.
“Loc brings with it tremendous manufacturing capabilities for producing vehicle designs and related activities,” Warnick commented, adding, “That, coupled with our international presence, creates significant synergies, both for their defense and commercial business.”
