Rheinmetall signs agreement to sell former Power Systems division to AEQUITA as it focuses on defence business

The German group said it has been focusing for some time on its fast-growing business with military customers and security agencies. It is also expanding its technological portfolio into the air, sea and space domains.

Rheinmetall has been in talks with potential buyers for its civilian business since last year. Those talks have now concluded with the signing of a purchase agreement with AEQUITA.

The transaction is expected to be completed in the fourth quarter of 2026. It remains subject to approval by the relevant regulatory authorities.

The provisional purchase price for 100% of the shares is €350 million. Rheinmetall said the figure is subject to standard market adjustment mechanisms until closing, meaning the final purchase price may differ.

The deal follows the sale of Rheinmetall’s large- and small-bore piston operations in 2023 and 2024. The company said it is now taking the decisive step in its announced exit from the automotive supplier business.

The Power Systems division generated sales of around €2 billion in 2025. It has been classified as a “discontinued operation” of the group since reporting for the fourth quarter of 2025.

AEQUITA intends to retain all of the approximately 6,250 Power Systems employees working worldwide at the companies being acquired. The buyer views the highly qualified staff and their skills as the most important asset for future business development.

AEQUITA will operate the former Rheinmetall Power Systems division as an independent entity. The business will continue to operate in the market under its long-established Pierburg, Kolbenschmidt and Motorservice brands, with all trademark rights remaining within the company.

“This is a significant milestone in the company’s history. We are focusing on the high-margin business with military customers, where we have excellent growth opportunities. Our stated objective was to place our civilian business operations in capable hands. We have found an excellent buyer in AEQUITA,” said Armin Papperger, CEO of Rheinmetall AG. “The internationally successful industrial holding company combines extensive experience in the industrial and automotive sectors with a focus on entrepreneurship, transformation and a long-term perspective.”

“This makes AEQUITA the ideal partner to work with the Power Systems management team to implement the strategy that has been developed and to ensure the long-term success of the Kolbenschmidt and Pierburg brands in the market,” said Marcus Gerlach, lead negotiator for Rheinmetall AG.

“We are very proud that Rheinmetall has chosen AEQUITA as the new owner of the Power Systems division. The company is an excellent addition to our Automotive division, which will now generate revenues of approximately €5 billion. In the years to come, our focus will be on actively supporting the long-term, successful and sustainable development of the company. This also involves realising synergies within our automotive portfolio,” said Dr Axel Geuer, Chairman and Co-CEO of AEQUITA.

Three German locations of KS Huayu AluTech GmbH, in Neckarsulm, Walldürn and Langenhagen, are excluded from the sale. They will remain within the Rheinmetall Group as a joint venture in the medium term and will continue to be classified as a “discontinued operation”.

Rheinmetall’s stake in Dermalog SensorTec GmbH will remain permanently within the group. It will be integrated into the Weapon and Ammunition division, while its employees will continue to be based at the Neuss site.

Pierburg S.A.’s Abadiano plant in Spain will also remain with Rheinmetall, together with its workforce and tangible assets. For a transitional period, the site will operate as a hybrid facility, manufacturing both civilian and military products until the switch to military production is complete.

AEQUITA is a Munich-based industrial group that invests in special situations such as corporate spin-offs, successions and transformations across Europe. Its current portfolio generates more than €10 billion in revenues across the automotive, chemicals and industrials segments.

With the acquisition of the Power Systems division, AEQUITA is expanding its portfolio. The group said it aims to unlock growth potential and help companies build a self-sustaining future through stronger innovation, agility and profitability.

Rheinmetall AG is an integrated technology group headquartered in Düsseldorf. Founded in 1889, it operates as an international systems house for the defence industry across the land, air, sea and space domains.

The company has around 34,000 employees at about 160 locations worldwide. Rheinmetall has been listed on the DAX 40 since March 2023 and generated sales of €9.9 billion in the 2025 fiscal year.