Rheinmetall Sells Civil Division to Focus on Defense Business
Technology group Rheinmetall has signed an agreement to sell its Power Systems division to industrial group AEQUITA. The divestment aligns with Rheinmetall's strategic shift towards its defense operations.
Rheinmetall AG has finalized its strategic realignment by agreeing to sell its civil Power Systems division to Munich-based industrial group AEQUITA. The agreement, signed on June 3, 2026, marks a significant step in the company's focus on its increasingly important defense business.
The divestment is part of Rheinmetall's long-term strategy to expand its technological portfolio into air, sea, and space domains, while concentrating resources on military customers and security authorities. The company has been in discussions with potential buyers for its civilian activities since last year, aiming for a completion of the transaction in the fourth quarter of 2026, subject to regulatory approvals.
The preliminary purchase price for the division is set at EUR 350 million, though this figure may be adjusted up to the closing of the deal. This sale follows Rheinmetall's earlier exits from small and large piston production activities and signals a decisive step away from supplying automotive manufacturers. The Power Systems division, which reported revenues of approximately EUR 2 billion in 2025, has been classified as a "non-core" or "discontinued operation" since the end of 2025.
AEQUITA plans to operate the acquired division as an independent entity, retaining its established brands such as Pierburg and Kolbenschmidt. Certain assets, including three German sites of the KS Huayu AluTech joint venture (which will remain with Rheinmetall for the medium term), Dermalog SensorTec GmbH (to be integrated into Rheinmetall's Weapon and Ammunition division), and the Spanish plant in Abadiano, are excluded from the sale. AEQUITA has committed to taking over all employees within the divested business.