Rheinmetall to acquire ammunition maker Expal Systems for €1.2bn
Germany’s Rheinmetall has agreed to acquire Spain-based ammunition maker Expal Systems from MaxamCorp. Holding for an enterprise value of €1.2 billion.
The acquisition is expected to help the Düsseldorf-based technology firm to expand its presence in Spain.
The buyout is anticipated to strengthen Rheinmetall’s key ammunition, weapon, and propellant business following increased capacity in spare production and an enlarged product portfolio.
The transaction also complements Rheinmetall’s portfolio of fuses and rocket propulsion systems, minimizing its reliance on suppliers for certain industrial intermediates and ammunition products.
Rheinmetall said that it is essential to maintain existing technology and staff as well as keep open all operational sites, including Trubia, Navalmoral, Burgos, Albacete, El Gordo, and Murcia in Spain as well as Texarkana, Texas in the US.
Expal Systems anticipates sales of approximately €400 million for the financial year 2022-23.
Rheinmetall said that the company’s total capacity offers scope for potential annual sales of €700 million to €800 million.
Subject to approval by the competition authorities and other regulatory checks, the transaction is expected to close in summer of 2023.