Rheinmetall sells civil division to AEQUITA for 350 million euros

German technology group Rheinmetall AG announced on June 3, 2026, that it has signed a purchase agreement to sell its civil division, Power Systems, to the Munich-based industrial group AEQUITA. The agreed purchase price for 100% of the shares is 350 million euros, with the transaction expected to close in the fourth quarter of 2026, subject to regulatory approvals.

This divestment is a key milestone in Rheinmetall's strategic reorientation, allowing the company to concentrate on its core defense operations and expand its technological portfolio into air, sea, and space domains. The Power Systems division, which generated revenue of approximately 2 billion euros in 2025, has been classified as "discontinued operations" since the company's reporting for the fourth quarter of 2025.

AEQUITA intends to continue employing all approximately 6,250 employees of the Power Systems division worldwide. The acquirer plans to maintain the division's established brands, including Pierburg, Kolbenschmidt, and Motorservice, and will manage it as a standalone entity. However, three German sites of KS Huayu AluTech GmbH, the stake in Dermalog SensorTec GmbH, and the Abadiano plant in Spain are excluded from the sale.

Rheinmetall CEO Armin Papperger stated that the move allows the company to focus on the high-margin military customer business with excellent growth opportunities. He described AEQUITA as a suitable buyer with extensive experience in the industrial and automotive sectors and a long-term entrepreneurial perspective. This sale represents a decisive step in Rheinmetall's announced withdrawal from supplying the automotive industry.