Defence giant Rheinmetall sells civilian Power Systems division to AEQUITA

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Copyright © BusinessAMBE 2023 Key takeaways Rheinmetall is selling its civilian Power Systems division to AEQUITA for approximately 350 million euros . This strategic divestment accelerates the company’s shift towards the fast‑growing defence market. AEQUITA will take on 6,250 employees, raising its automotive-sector turnover to 5 billion euros . To prioritise its military activities, Rheinmetall has reached an agreement to transfer its civilian Power Systems division to the Munich -based industrial conglomerate AEQUITA. The acquisition, valued at around 350 million euros pending final adjustments, is expected to be completed in the final quarter of 2026, following the necessary regulatory approvals. This division, which recorded annual revenue of about 2 billion euros last year, has been classified as a discontinued operation in financial reporting since the end of 2025. AEQUITA has committed to retaining the workforce of roughly 6,250 employees. Shift towards defence The acquired activities will operate as an independent entity under the well-known brands Motorservice, Kolbenschmidt and Pierburg , all of which are leading suppliers within the European automotive sector. This move marks the culmination of a long-term strategy by Rheinmetall to focus on the fast-growing defence market, fuelled by the conflict in Ukraine . This transition follows earlier divestments of piston production units over the course of 2023 and 2024. Reaction from executives CEO Armin Papperger described the transaction as a crucial moment for the company, noting that the shift enables Rheinmetall to concentrate on defence sectors with high margins and substantial growth potential. Axel Geuer , co-CEO of AEQUITA, for his part expressed his pride in the acquisition, stating that integrating these assets will increase his group’s automotive revenue to around 5 billion euros . Remaining assets Certain assets will remain under Rheinmetall’s control. Three German sites operated by KS Huayu AluTech – located in Langenhagen, Walldürn and Neckarsulm – are excluded from the sale and will continue to exist as a joint venture. In addition, the company is definitively integrating Dermalog SensorTec into its Weapons and Ammunition division, with staff at the Neuss site being retained. Finally, the Pierburg site in Spain will be retained; initially it will manufacture both military and civilian products, before switching entirely to defence production. Follow Business AM on Google News as well If you want access to all articles, take advantage of our temporary promotion and subscribe here! © The Content Exchange, source News

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