In a move that will significantly expand its business with the US military, Rheinmetall has agreed to acquire US-based vehicle specialist Loc Performance for $950 million. The deal strengthens Rheinmetall’s industrial presence in North America and provides it with greater access for its technologies in the region.
The acquisition is particularly well-timed, as Rheinmetall is currently vying for major US Army vehicle programs with a combined potential of over $60 billion. These programs include the XM30 infantry fighting vehicle and the CTT (Common Tactical Truck).
Loc Performance, with its 1,000 employees and expertise in vehicle and armor products, will make a significant contribution to Rheinmetall’s US military vehicle business. The company, based in Plymouth, Michigan, is a full-service provider of driveline, suspension, track systems, rubber products, armor products and fabricated structures for vehicle platforms. According to the company, Loc is the only qualified military track systems supplier for every major tracked combat vehicle platform in the U.S. Army fleet.
Once the deal passes regulatory muster it will be integrated into American Rheinmetall Vehicles, Rheinmetall’s US-based subsidiary, which will allow it to deliver more comprehensive solutions to the US Department of Defense.
A military history enthusiast, Richard began at Forecast International as editor of the World Weapons Weekly newsletter. As the Internet grew in importance as a research tool, he helped design the company's Forecast Intelligence Center and currently coordinates the EMarket Alert newsletters for clients. Richard also manages social media efforts, including two new blogs: Defense & Security Monitor, covering defense systems and international issues, and Flight Plan, which focuses on commercial aviation and space systems. For over 30 years, Richard has authored the Defense & Aerospace Companies, Volume I (North America) and Volume II (International) services. The two books provide detailed data on major aerospace and defense contractors. He also edits the International Contractors service, a database that tracks all the contractors involved in the programs covered in the FI library. More recently he was appointed Manager, Information Services Group (ISG), a new unit that encompasses developing outbound content for both Forecast International and Military Periscope.
