Rheinmetall AG takes over all shares of the Spanish company Expal Systems S.A.U.. The purchase price for the acquisition amounts to approximately €1.2 billion. From now on, the Madrid-based company will be known as Rheinmetall Expal Munitions, S.A.U..
The takeover was already scheduled for last year, but required the approval of the Spanish authorities. Expal Systems develops and manufactures artillery ammunition, mortar rounds, medium-caliber ammunition, fuzes and rocket propulsion systems. Following the successful takeover, Rheinmetall has the entire ammunition production value chain at its disposal at a number of locations in Spain and an ammunition disposal site in the USA. Through the acquisition, Rheinmetall hopes to increase production capacity and play a stronger role in the Spanish market. It also believes that the capabilities it has gained will enable it to outbid rivals in the competition for international contracts.
Due to the consistently high demand in the defence sector, Rheinmetall feels compelled to expand. The acquisition of Expal S.A.U. also creates a direct link to the Spanish armed forces.
Rheinmetall is particularly pleased about the acquisition of qualified specialists.