02/12/2024 | Press release

Rheinmetall AG, a global leading supplier of innovative technology solutions has expanded its footprint in the U.S. market with the completion of its acquisition of Loc Performance Products, LLC, a Michigan-based provider of solutions for track and mechanical systems, fabricated structures, and precision machined components for the defense, industrial, and commercial markets. The acquisition, finalized on November 29^th, provides Rheinmetall with significant benefits in its global business, while most directly contributing to its rapidly growing U.S. military vehicle business led by American Rheinmetall Vehicles, with headquarters in Sterling Heights, MI. Moving forward, the acquired company will operate under the name American Rheinmetall Vehicles.
 

Global Growth for Rheinmetall

The acquisition of Loc Performance Products, LLC strengthens and expands Rheinmetall’s presence in the U.S. market, engraining its place in the U.S. defense industrial base, and reinforcing its commitment to the U.S. Department of Defense, American Armed Forces, and its commercial customers. The acquisition brings critical capabilities into the Rheinmetall group and places American Rheinmetall Vehicles in position to deliver more effectively and broadly for its customers by significantly expanding the company’s U.S. product portfolio and manufacturing capabilities.

Loc Performance Products has been a high-performing, full-service provider of driveline, suspension, track systems, rubber products, armor products, and fabricated structures for vehicle platforms since 1971. The company sells direct to the U.S. Government, its major prime contractors, as well as to prominent vehicle manufacturers in the agriculture, construction, mining, locomotive, mass transportation, and oil & gas industries. With its acquisition of Loc Performance Products, Rheinmetall will add important new customers to its customer base, immediately increase its American workforce by 1,000+, and strategically position the company for the manufacture of critical U.S. Army vehicles that support top modernization priorities. Rheinmetall has a long history of providing leading technologies to the commercial market and looks forward to expanding its portfolio as part of this acquisition and supporting international expansion for our customers.

Armin Papperger, CEO of Rheinmetall AG: “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 years ahead. I would like to extend a warm welcome to the approximately one thousand employees of Loc Performance Products in the Rheinmetall Group. We value your skills and look forward to achieving success together.”

 

Strategic Benefits for American Rheinmetall Vehicles

American Rheinmetall Vehicles offers next-generation tracked and wheeled combat vehicles and tactical wheeled vehicle platforms to U.S. customers. American Rheinmetall Vehicles is most actively engaged in supporting the U.S. Army in two high priority modernization programs, the XM30 Combat Vehicle program where the Lynx XM30 has advanced to phase 3 and 4, and the Common Tactical Truck (CTT) program where the HX3 CTT recently completed evaluation by the U.S. Army.

The acquisition of Loc Performance Products, LLC provides a broad benefit to American Rheinmetall Vehicles as the company continues to expand. The purchase brings American Rheinmetall Vehicles 1.7 million sq. ft. of modern, efficient manufacturing space with significant capacity for future expansion. Current manufacturing capabilities at Loc Performance Products include modernized fabrication, machining, and welding proficiencies, each of which supports the critical manufacturing requirements found in American Rheinmetall Vehicles’ current programs such as XM30 and CTT and future pursuits. In addition to the military market, the acquisition comes with a leading market share in agricultural track, which increases American Rheinmetall Vehicles’ commercial market penetration and growth potential.

Matt Warnick, Managing Director for American Rheinmetall Vehicles: “I am excited by the major strategic action we at Rheinmetall have taken to expand our commitment, capability, and growth potential in the U.S. Rheinmetall’s acquisition of Loc Performance Products is a major step forward that will position both entities for growth and enable American Rheinmetall to be a better partner to our customers including the U.S. Army, valued primes in the defense industrial base, and – in a new market entry for American Rheinmetall – exceptional agriculture industry partners.”

“The entire organization is excited by the opportunities ahead as we become part of American Rheinmetall Vehicles,” said Loc Performance Products CEO Jason Atkinson, who will remain in leadership as Chief Operating Officer at American Rheinmetall Vehicles. “Now, as one team, we will pursue and I am confident achieve even higher levels of growth, while continuing to provide our customers with the exceptional quality and service they expect and deserve,” Atkinson continued.

By leveraging its global resources and local partnerships, American Rheinmetall Vehicles is positioned to deliver cutting-edge platforms tailored to meet the evolving needs of the U.S. Armed Forces for years to come. This strategic move underscores the company's commitment to excellence and its dedication to supporting the defense readiness of the United States.
 

About American Rheinmetall

American Rheinmetall supports the Department of Defense on critical modernization programs of national importance that directly enhance Soldier lethality, mobility, and situational awareness on the battlefield by developing and delivering next-generation products and capabilities, including advanced direct and long-range precision fires, innovative tracked and wheeled combat vehicle platforms, and smart mission systems. Delivering what modern battle requires, what Soldiers need, and what victory demands.

The American Rheinmetall family of U.S. companies includes American Rheinmetall Munitions in Stafford, VA, Windham, ME, and Camden, AR, American Rheinmetall Systems in Biddeford, ME, American Rheinmetall Vehicles in Sterling Heights, MI, and Troy, MI, and U.S. corporate parent American Rheinmetall Defense in Reston, VA.