Rheinmetall AG at this time concluded a purchase order contract with MaxamCorp. Holding S.L. of Madrid to amass the whole share capital of Expal Methods S.A of Madrid, a globally famend ammunition maker. Completion of the transaction, for which a cut-off date in summer season 2023 is sought, is topic to approval by the competitors authorities and different regulatory checks. The acquisition value agreed between Rheinmetall and MaxamCorp., which is due after closing, relies on an enterprise worth of €1.2 billion. In making this acquisition, the Düsseldorf-based expertise enterprise is looking for to bolster its core weapon, ammunition and propellant enterprise in a sustained approach, with elevated spare manufacturing capability and an expanded product portfolio the prime focal factors.

As a result of the product spectrums of the 2 corporations complement one another so nicely, the acquisition considerably augments Rheinmetall’s current vary of merchandise, particularly within the fast-growing marketplace for artillery and mortar ammunition in addition to mortar techniques. The buyout additionally provides to Rheinmetall’s portfolio within the discipline of fuses and rocket propulsion techniques, for instance, in addition to in medium-calibre ammunition and plane armament, whereas concurrently lowering the Group’s dependence on suppliers for some industrial intermediates and ammunition elements.


Expal’s 60, 81 and 120 mm mortar techniques and munitions are in service in over 35 allied worldwide nations.

In a dynamic market state of affairs propelled by huge demand for navy gear in a number of nations, the acquisition gives Rheinmetall with swift entry to considerably higher capability. Given the anticipated massive improve in demand from quite a few nations, Rheinmetall desires to place itself as strongly as attainable to deal with the anticipated influx of recent requests for tender for ammunition purchases. Of particular strategic significance to Rheinmetall on this context is the ensuing entry to additional manufacturing capability for propulsions and expenses, that are topic to bottlenecks in Europe within the meantime.

In vital areas like buying and gross sales, synergies could have a optimistic impression on prices, which may also profit clients. Because of this acquisition, Rheinmetall is gaining a priceless strategic foothold in Spain, and thus direct entry to this vital market. Rheinmetall sees sustaining the corporate’s current expertise and workers as important; all operational areas (Trubia, Burgos, Navalmoral, El Gordo, Albacete and Murcia in Spain in addition to Texarkana, Texas within the USA) are subsequently to stay open. Expal Methods S.A. expects gross sales in FY 2022/23 to be round €400 million. The corporate’s whole capability gives scope for potential annual gross sales of €700 to €800 million.

Expal's 105mm and 155mm ammunition
Expal’s 105mm and 155mm ammunition