Rheinmetall Sells Civilian Division to AEQUITA for 350 Million Euros

Rheinmetall has finalized the sale of its Power Systems division to Munich-based industrial group AEQUITA for €350 million. The deal, announced as a milestone in the company's strategic realignment, is expected to be completed in the fourth quarter of 2026, subject to regulatory approvals.

This divestment marks Rheinmetall's decisive exit from the automotive supplier business, allowing the company to concentrate on its rapidly growing defense activities. Rheinmetall has stated its intention to expand its technological portfolio into air, sea, and space domains, prioritizing business with military customers and security agencies.

The Power Systems division, which generated approximately €2 billion in sales in 2025, has been classified as a discontinued operation since the fourth quarter of 2025. Excluded from the sale are the KS Huayu AluTech GmbH locations in Germany, the stake in Dermalog SensorTec GmbH, and the Abadiano plant in Spain, all of which will remain with Rheinmetall.

AEQUITA intends to retain all approximately 6,250 employees of the Power Systems division worldwide. The division will continue to operate independently under its established brands, including Pierburg and Kolbenschmidt. Rheinmetall CEO Armin Papperger stated that AEQUITA is an excellent buyer, capable of ensuring the long-term success of the business.