Rheinmetall Acquires Spanish Defence Firm Expal Systems for €1.2 Billion
Rheinmetall AG has completed its acquisition of Spanish defence contractor Expal Systems S.A.U. for approximately €1.2 billion. The move significantly expands the German company's ammunition production capacity.
German defence group Rheinmetall AG has finalized the acquisition of all shares in Spanish defence contractor Expal Systems S.A.U. The deal, initially announced last November, received its final regulatory approvals and officially transferred Expal's business activities to Rheinmetall on August 1, 2023. The purchase price for Expal Systems, a manufacturer of ammunition and armament systems, was approximately €1.2 billion.
Under the new structure, Expal's operations will continue as Rheinmetall Expal Munitions, S.A.U. This acquisition is set to substantially increase Rheinmetall's ammunition production capacity, particularly for artillery, mortar, and medium-calibre rounds. The company serves as a key supplier to NATO armed forces and aims to meet rising global demand for military equipment.
The integration of Expal aims to bolster Rheinmetall's core business in weapons, ammunition, and propellants. Expal Systems' product portfolio includes artillery, mortar, and medium-calibre ammunition, as well as fuses and rocket propulsion systems, often produced as complete packages. Rheinmetall anticipates this will strengthen its existing product range and enhance its ability to respond to complex new ammunition procurement requirements.
The acquisition also expands Rheinmetall's footprint in Spain, where it already operates an automotive engineering plant. All of Expal's production sites in Spain will remain operational, alongside its US-based soil remediation business. Rheinmetall plans further expansions at these locations and intends to retain Expal's existing technology and workforce.