German defense company Rheinmetall has announced the sale of its automotive components business, Rheinmetall Power Systems, to Munich-based industrial group AEQUITA in order to focus on military contracts.
„Today, Rheinmetall and Munich-based industrial group AEQUITA signed a purchase agreement, paving the way for the former Rheinmetall Power Systems division to move forward under new management. Rheinmetall has long focused on its fast-growing business with military customers and security agencies, while simultaneously expanding its technology portfolio in the aerospace, maritime and space sectors. The company has been in talks with potential buyers of its civil business since last year, which have now been successfully concluded with the signing of the agreement for the sale of the AEQUITA group,“ the company said in a statement.
The deal, as the group explains, is planned to be completed in the fourth quarter of 2026. It is subject to approval by the competent regulatory authorities. “The preliminary purchase price for 100% of the shares is EUR 350 million and is subject to customary market adjustments before the transaction is completed. Therefore, the actual final purchase price may differ from the stated price“, Rheinmetall stressed.
Rheinmetall Power Systems' revenue for 2025 will be EUR 2 billion. Rheinmetall assured that AEQUITA intends to continue its cooperation with all approximately 6,250 employees working in its “Power Systems“ divisions worldwide. AEQUITA will operate the former Rheinmetall Power Systems division as an independent legal entity, while all rights to the brands will remain with the company.
Rheinmetall is Germany's largest defense company. It has benefited significantly from the conflict in Ukraine. The group is also supplying military equipment, including tanks and ammunition, to Kiev and is building an ammunition production plant in Ukraine.